Power Lunch

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Power Lunch

A bullish case for U.S. stocks

Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters

U.S. stocks lower Friday with weak new home sales numbers pushing the three major averages down.

Read More U.S. new home sales fall to seven-month low

Two market strategists remain positive on U.S. stocks.

Chris Bertelsen is Chief Investment Officer with Global Financial Private Capital. He says once the summer doldrums pass he expects the market to "resume its climb toward 19,000 on the Dow Jones Industrial Average, to 2,300 on the and 5,500 on the Nasdaq."

Ernesto Ramos, is portfolio manager of the four star Morningstar rated BMO Large Cap Growth Fund at BMO Global Asset Management.

He says he is positioned for U.S. strength and underweight more globally exposed companies.

Ramos says good examples of this include his positioning in "consumer staples, where we own domestically focused stocks like CVS and industrials where we own U.S. focused stocks like Acuity Brands."

Ramos' biggest overweights are in high quality health care and technology. Where he says "we see good secular growth prospects, such as Edward Lifesciences and Factset Research Systems."

Bertelsen on the other hand says "play the Zoe's Kitchen for pets and Blue Buffalo, an IPO from 2 days ago."

Bertelsen goes on to say the biggest catchy phrase is "learning to love what you hate. Start picking off all the peak margin, peak P/E, peak P/S, zero growth American blue chippers," says Bertelsen, "especially as activists or even better new CEO's enter the fray. The poor performance of stocks like IBM and Coca-Cola are crying out for restructure [creative destruction]. We have seen that already with major pharma like Merck and Pfizer. Shrink to grow."