Two experts, Neil Hennessy, portfolio manager at Hennessy Funds and Kevin Caron, market strategist at Stifel Nicolaus discussed the market rally’s sustainability and the best places to invest.
“The rally will continue to go higher,” Hennessy told CNBC.
Although investors typically buy high-yield bonds as a substitute for the stock market during hard times, Hennessy said it is now time to move back into equities.
“Once everyone starts running one way, it’s not the place to be,” he said. “And the only articles written out there are about bonds and investing in bonds. So most likely, the money at some point in time will move into equities.”
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Caron said he remains bearish, but he’s been noticing some improvements in the economy that suggest a possible bullish market in the future.
“We’re still bearish, but we’ve added some equities in recent weeks, so we‘re not as bearish as we have been,” said Caron. “If these [economic] trends persist and broaden out to encompass a wider range of economic data, we’ll be more bullish.”
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