The Greek debt crisis is beginning to take a back seat, while the earnings season has got off to a solid start, therefore stocks are once again a good place for investors, Bruno Verstraete, CEO of Nautilus Invest in Zurich, told CNBC Tuesday.
Verstraete is positive on stocks and believes only a major geo-political event would lead to a significant correction from here.
But with so many risks out there, he advises getting out of cyclical growth shares and into high dividend yield stocks with good cash flow.
Any signs of rising inflation will mark a good time to buy more deliverable commodities like oil and metals, according to Verstraete.
This is a view backed by Jim Bianco, the president of Bianco Research, who said that if we begin to see inflation coming through, commodity stocks will offer good value.
Commodity prices are very dependent on China and Asia, a region where nearly all the good news is coming from at the moment, Verstraete said.
Asked if cash was a safer bet given all the uncertainty out there, Verstraete said that investors playing it too safely will miss out on solid gains; corporate bonds could offer better value because apart from safety they also offer yield, he added.
"Many corporate bonds are now looking safer than some sovereign paper," Verstraete said.
In the sovereign bonds area, it will not be as profitable to hold US Treasurys as stimulus money is withdrawn from the economy, he warned.
Verstraete prefers US debt to European debt but warns that when rates start to rise and stimulus is removed, there will be less and less reason to hold government debt at a time when issuances worth billions of dollars and euros are expected.