CNBC Stock Blog

Markets Will Go Flat—So Buy Dividend Stocks: Manager

Stocks turned mixed on Wednesday, with the Dow retreating, after the S&P broke through a key level. Barbara Marcin, portfolio manager at Gabelli Blue Chip Value Fund, shared her investment strategies.

“We have a very strong liquidity-driven market and it’s very fairly priced, so I would be careful about where I put money,” Marcin told CNBC.

“Right now, I suggest that investors put their money in stocks that pay a good dividend, have global franchises, can support that dividend, [and] have good cash earnings.”

Although Marcin said the S&P will finish higher than its current position by year-end, she expects the markets to enter a flat period over the next couple of years.

“The market has to grow into this valuation—we’re pricing in a real recovery, which isn’t here yet,” she said. “We’re at a low level of economic activity and I think we’re going to continue there and the markets are going to bounce around for a while.”

  • Watch Marcin's Previous Appearance on CNBC (Sept. 25, 2009)

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Disclosures:

No immediate information was available for Marcin or her firm.

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