Trading a lackluster market

Michael Cuggino
Neal Hamberg | Bloomberg | Getty Images

U.S. stocks staging a slight rebound Wednesday afternoon, though the drop in oil prices crimped most gains.

Michael Cuggino, president and manager of the $3.7 billion Permanent Portfolio Family of Funds, thinks there is no compelling reason to buy or sell in what he describes as a "lackluster" market environment

Appearing on CNBC's "Power Lunch" on Wednesday, Cuggino said "Absent new relevant and material data, I don't see the market moving substantially in either direction for the rest of the year."

Cuggino doubts another major move to the upside will occur anytime soon, "given the economic landscape we currently exist in."

Which is why he is being extremely selective and patient in his stock-picking strategy right now.

"I look for individual names that have sold off or are reasonably priced for long-term gains with supportable dividends," said Cuggino.

His two top stocks in the Permanent Fund are Illinois Tool Works and Parker Hannifin for their "reasonable" prices and longer-term growth prospects.

Another name Cuggino likes is Apache. which he considers a "potential takeover candidate."

One stock that won't find its way into Cuggino's portfolio anytime soon is Yahoo, which he calls "adrift and getting left behind."

Playing a 'blah' market