Market Pros Give Their Second-Half Outlook for Stocks

With the second half beginning next week, two market analysts joined "Morning Call" to give their outlook for stocks for the remainder of 2007.

Charles Bobrinskoy, vice chairman and director of research at Ariel Capital Management, is "somewhere between cautious and bearish," while Patricia Chadwick, president of Ravengate Partners, "is not as worried."

Bobrinskoy told CNBC's Michelle Caruso-Cabrera that his firm is "long-term cautious" in general, citing "one more bubble that's yet to burst: leveraged debt."

He noted that high-yield bonds are trading "too tight," and people are "not being rewarded" for taking on risk. The vice chairman believes that when bonds' "historic" tightness relative to Treasurys finally widens, it will hurt rates at which hedge funds borrow -- sending ripples throughout the markets.

Thus, Bobrinskoy seeks to invest in quality firms with less risk -- particularly, consumer-branded stocks.

Chadwick is more optimistic, calling the underlying pinnings of the market "good." She chides investors for growing complacent during the long period of low volatility -- but voiced "some concern" of her own on the political front: "If you raise taxes meaningfully, it will have an economic impact and a market impact," she observed.

Chadwick believes that the valuation of the market is still attractive, and earnings growth is "definitely fair."