CNBC Stock Blog

Stock Selection is Key for 2010 Market: Portfolio Manager

Markets are riskier than they were a year ago, agreed Richard Peterson, director of markets, credit and risk strategies at Standard & Poor’s, and Sarah Ketterer, portfolio manager at Causeway Capital Management. So how should investors prepare their portfolios in the coming weeks?

Checking Market Pulse

“I’d say there's a certain amount of consolidation [in the market],” Ketterer told CNBC.

“We’ve had a huge move in 2009, and 2010 could be a year that’s not nearly as interesting from a market perspective, but more of a market for active investors focused on stock selection.”

Ketterer said while both the U.S. and global markets have become riskier, there are still opportunities for investors.

“Volatility is still above normal, [but] the diminishing volatility level should put more comfort in the minds of investors,” she said.

In the meantime, Peterson said he sees “great resilience” in the market.

“[We] anticipate 25,000 in job losses,” he said of Friday's employment number. “This economy is recovering…but there are risks involved. The high unemployment rates are ultimately going to affect consumer spending.”

Other Market Opinions:

CNBC Slideshows:

CNBC Data Pages:


CNBC's Companies in the News:


General Electric

  • Comcast-NBC Universal Deal to Be Reviewed by US



  • Cadbury Board Seeking Alternative Bidders: Source

Lockheed Martin


No immediate information was available for Peterson or his firm.