John Fitzgibbons, partner and head of wealth management at ThinkEquity, said he is fairly cautious going into the first half of 2010. So how should investors position their portfolios in this type of market? He shared his best stock and sector plays.
“The S&P 500 is up 1 index point, or 10 basis points, in the last 3 months, so the investor is looking for a sense that the U.S. consumer, who is 70 percent of GDP, actually has the footing to be able to go out and spend the money that they want to spend,” Fitzgibbons told CNBC.
Fitzgibbons said he likes retail stocks, and focuses on companies that have a high degree of consumer loyalty and the ability to grow.
Additionally, he likes the long-term secular plays in China.
“We look for those opportunities in the market place that are niche plays, where earnings are going to grow and thematically, the company is well-positioned,” he said.
“China growing 10 percent in the fourth quarter is a good story…It’s still a place we want to be—it’s still a place where earnings can grow and money can be spent and businesses can grow.” (Counterpoint: Shanghai Index Lowest Since October)
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No immediate information was available for Fitzgibbons or his firm.