The Dow continued its fall below 10,000 on Friday, causing investors to worry about the beginning of a possible correction. How should investors position their portfolios? John Merrill, founder and CIO of Tanglewood Wealth Management and Andrew Kanaly, chairman of Kanaly Trust Company shared their market outlooks.
“We’re in a correction—this was technically long overdue,” Kanaly told CNBC.
Kanaly said the U.S. is in a good shape economically for the year, but he is concerned about 2011 when problems may start to arise. He encouraged investors to look into the emerging markets.
“They’ve really taken a beating and we’re going to keep an eye on the carry trade,” he said. “Watch the dollar relationship to all asset class risk.”
In the meantime, Merrill said the continuing sovereign debt issues could derail the bull market.
“But I’m in the bullish camp,” he said. “This is more of a correction and it may have a little more to go—I think this a bull market that’s very well supported.”
Merrill said he likes the high-quality, multi-national names.
“They’re among the cheapest stocks in the market and we like the fact that they can go where the growth is,” he said.
More Market Intelligence:
- Expect Further 5% Correction, At Least: Strategist
- Art Cashin: It's All About the Dollar
- S&P Will Correct to 2009 March 5 Low: Charts
CNBC Data Pages:
______________________________
CNBC Slideshows:
Cramer's 12 Stocks to Play the Recovery
______________________________
CNBC's Companies in the News:
Toyota
Toyota Throttle Blamed for Fatal Crash in California
Air Products
Airgas
Air Products Makes $5.1 Billion Bid to Buy Airgas
P&G
P&G Chief More Worried About US Than Ever
UBS
UBS to Reorganize Struggling US Wealth Management
______________________________
Disclosures:
No immediate information was available for Kanaly or Merrill.
______________________________