Stocks rallied on Tuesday after the Empire State Manufacturing Index rose past expectations, and on some positive earnings reports. How should investors be positioned going forward? Rod Smyth, chief investment strategist at Riverfront Investment Group, shared his investment strategies.
“This is a correction in an ongoing cyclical bull,” Smyth told CNBC.
Smyth particularly likes the dividend players and the dividend growers and said this is an opportunity for investors to look into them.
“One of the things we’re really focused on is: Who do you want to lend money to in the next 10 years? Do you want to lend money to the U.S. government? I don’t think so,” he said.
Instead, Smyth said lending money to shareholders and getting the dividends and dividend growth over the coming decade is a better play for investors.
“So this is a classic reason why U.S. stocks will beat bonds single-handedly over the next 10 years,” he said.
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No immediate information was available for Holland or Smyth.