Stock-market investors like the sound of bulls, but is it time to get back in now?
Harbor Advisory's chief investment officer Jack DeGan suggests that value investors take half a position in some stocks now, and wait to invest the rest.
"Be careful of falling into a value trap, which is where share prices fall more quickly than earnings estimates and book value get marked down, which creates the illusion of value," he cautioned CNBC. "Value investors have to be patient."
He has two areas of special interest:
"The stocks that are levered to the international infrastructure build-out have been crushed in the last two months," he said. "These are stocks like Boeing, Caterpillar, Emerson, General Electric; they're growth cyclicals...although this international slowdown may slow infrastructure spending, it'll be deferred, not canceled, and that business will be there in a year's time."
His second area of interest is energy. (See Part 2 for his energy picks.)