Hugh Johnson of Johnson Illington Advisors is beginning the new year in a defensive investing posture, but he's getting ready for a quick switch to the offense.
He feels things have been changing since the market bottom on November 20.
"Obviously, it's not just that the stock market is up, but you see other encouraging signs," he told CNBC. "Consumer cyclicals have led the parade; small-company stocks are outperforming large-company stocks; you're seeing quality spreads in the credit market start to narrow."
Johnson remains overweight in defensive sectors like health care and utilities.
"I get very nervous about valuations in this market, but so far, the relative performance of health care has been very good, so I'm staying with it," he said.
Disclosure information for Hugh Johnson was not immediately available.