Craig Columbus of Advanced Equities Asset Management and Peter Boockvar at Miller Tabak discussed their outlook for the economy and shared their sector likes and dislikes. (See below for their investment picks and pans.)
Columbus said with inventory liquidation, he expects new orders and jobs that will bring about a recovery in the third quarter.
“We’ve removed the threat of backdoor nationalization and we’ve removed some of the insolvency risk from these companies and that sets the table for a healthier financial system,” Columbus told CNBC.
But Boockvar disagreed, saying he fears that inflation is already in the works.
“Inflation is not an event, it’s a process. And it’s well underway,” said Boockvar. “By the time inflation really hits when we get our higher-than expected CPI numbers, it’s going to be very difficult for the Fed to quickly backtrack and unwind those numbers.”
(Watch the full interview to see Columbus and Boockvar discuss the Dollar, the Fed & more.)
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Columbus recommended investors to have some sizeable portion of commodities-based exposure.
“Hard asset exposure, oil service, agricultural producers, base metals, gold, is a key component,” he said. “As the yield curve steepens, you look at the early cycle groups — technology will be a leadership play.”
“The center of this entire storm is retail, housing, and financials,” said Boockvar. “And the headwinds are still tremendous.”
No immediate information was available for Columbus or Boockvar.
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