Ride the Rally with Small Caps, Storage & Sin

U.S. stocks soared more than 200 points Friday, led by financials and tech. CNBC asked the market experts how investors can best ride this rally.

Betting on Storage

“I specifically like the storage sector and what is selling into the corporate networks, because for enterprises, storage really is not that discretionary of a trend. Even the financial services industry, who’s had to cut back on a lot of IT spending of late, they need to continue spending on storage.”

David Lutz, Stifel Nicolaus Capital Markets Managing Director

Lutz recommends: EMC Corp , Hewlett-Packard and NetApp .

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Tobacco: A Real “Growth Business”

“People smoke all over the world. In fact, if you go outside of the U.S. on vacation, you’ll notice just how many people smoke, so there are tremendous growth opportunities. It’s a real actual growth business outside of the U.S.”

Charles Norton, Vice Fund Portfolio Manager

Norton recommends: Altria .



Riding the Volatility Wave With Small Caps

“We’re seeing a lot of value in a lot of the small companies that we [follow], and we’re focused on those companies that have exposure outside the United States.”

Dan Veru, Palisade Capital Management Co-Chief Investment Officer

Veru recommends: Harsco