×

Stock Pickers: Govt. Building 'Bridge' To Growth

Riverfront Investment Group's Rod Smyth characterizes the current efforts of the Federal Reserve and the Treasury in civil-engineering terms.

"I think there's one huge bridge being built," Smyth told CNBC. "It's trying to take us from this recession that we're in, into the next expansion."

Mike Holland of Holland & Co. agrees, and says some investment opportunities are also being built. Smyth says Standard & Poor's 500-stock index is trapped in a "decision box" between 750 and 1000.

"My guess is, first quarter, for much of the early part of the year, we may have a cyclical rally up to the upper end of the range, but I don't think we break out of that box until the middle of next year," Smyth said.

Smyth worries that the "bridge" project might fail, but Holland suggests that the new Obama administration will make it work: "I think we're going to have something momentous over the next couple of years," Holland said.

Recommendations:

Holland's "buy" list includes IBM, Microsoft, Johnson & Johnson, Exxon Mobil, and General Electric.

Disclosures:

General Electric is the corporate parent of CNBC.com.

Disclaimer