The Federal Reserve, as expected, decided to hold interest rates at a record low for an "extended period" to keep the economic recovery going and drive down double-digit unemployment. What does this mean for stocks going forward? Kenneth Heebner, portfolio manager at Capital Growth Management shared his view.
“What you have here is a situation where you have low inflation, and an opportunity for the global economy to grow for several years,” Heebner told CNBC. “So if you own stocks, the wind’s at your back.”
Heebner told investors not to worry about a double dip in the economy and said there are many factors that naturally cause the economy to grow. He said investors should consider looking into the following commodities and stocks.
“The two commodities which are going to be in short supply are metallurgical coal and copper,” he said.
“Metallurgical coal goes into steel, and steel and copper are building blocks of economies that are growing—particularly emerging economies where you need to build out infrastructure.”
"In both cases, you’re going to see the prices go well above where they were in the previous highs," he said.
Heebner said the two stocks that are the most leveraged to those are Teck Resources and Freeport McMoRan.
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No immediate information was available for Heebner or his firm.