CNBC Stock Blog

I'm Bullish For the Rest of 2009: 5-Star Stock Picker

Stocks retreated on Tuesday after several earnings reports beat expectations but economic numbers missed their targets. What should investors expect going forward into 2010?

Investing in China

Dan Chung, CEO and CIO of Fred Alger Management, shared his insights.

“We get a consolidation of the rally here in the U.S. in 2010 and towards the end of the year, we have an opportunity for further gains into 2011,” Chung told CNBC.

“I think it’s going to be trading in a range next year, so there will be little dips and little rises, but overall we’ll avoid any dramatic selloff we’ve had recently.”

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Chung said he is bullish for the rest of 2009 and advised investors to have an allocation in international stocks, but also focus on U.S. companies that are performing well overseas.

Additionally, Chung said he expects an uptick in M&A activity going forward.

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“We’ve seen a record amount of M&A activity in health care this year, even ahead of legislation, and also in technology,” he said.

“Large companies have been pushed out of the M&A market by private equity in the past years. Private equity now no longer has access to easy financing so we’re seeing cash rich, well financed big companies going after high growth specialized providers who can offer them accelerated growth entry into new markets.”

Chung's Picks:

Skyworks Solutions  

Starent Networks  


Yum Brands  

China Resources Enterprises

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Chung owns shares of STAR, SWK, OPEN, YUM and China Resources Enterprises via owning shares of his funds.