When it comes to 2018 investing, ‘boring’ is better, portfolio manager says

Now that we're in December, one portfolio manager says the best way to position oneself in the new year is with a combination of passive and active investment.

Plus, said Chad Morganlander, portfolio manager at Washington Crossing Advisors, getting into "boring, quality names" with rising dividends will benefit investors most. Here's why.

  • With tactical asset allocation, passive vehicles like exchange-traded funds offer exposure to broader markets.
  • At the same time, active management and picking low-volatility stocks that will outperform in times of market turbulence are the way to go, he said.
  • He recommends health-care and consumer discretionary stocks, specifically Hormel, Dr Pepper, Amgen and Abbott Laboratories.

Bottom line: A mixture of active and passive investments and so-called "boring" stocks will prove to be a smart investment strategy in 2018, according to Chad Morganlander.

Disclosure: Morganlander's firm owns shares of Hormel, Dr. Pepper, Amgen and Abbott Labs. He does not own them personally.


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Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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