Take your cash out from the sidelines because "there’s still a lot of stocks we can put money into today," said Robert Millen, co-portfolio manager at Jensen Portfolio.
“We’re not afraid of the run-up in growth stocks,” Millen told CNBC. “[We like] companies that have consistent growth, high quality balance sheets and good prospects for growing even in a slow-growth economy.” (Read below for his stock picks.)
In addition to growth stocks, Millen said he also likes the cyclicals.
“We have some exposure to cyclicals in what we call a “quality global industrials” for example, United Technologies and Emerson . These are more consistent cyclicals that we think will do well not only in the early stages, but more importantly in the later stages of a recovery, and I think most people projecting that this recovery is going to be slow, long and characterized by sub-par GDP growth.”
Millen said the market is ahead of itself and expects some volatility ahead.
“But the general trend over the next several years is up,” he said.
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Millen’s firm owns shares of all the companies above.