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Bulls vs. Bears: Where to Invest Now

David Tice, portfolio manager at The Federated Prudent Bear Fund, and Jack Ablin, chief investment officer at Harris Private Bank, discussed their outlook for the economy and shared their sector likes and dislikes.

“The economy is improving,” Ablin told CNBC. “We have a steep yield curve, and a lot of factors such as an easy Fed providing great backdrop for stocks, which is a good sign for equities.”

Ablin said he is comfortable that the market gains thus far are sustainable and with some more positive momentum, “we could see stocks higher for the next couple of years.” (See below for Ablin's recommendations.)

Counterpoint:

Tice said he expects the S&P 500 to dip below 400 over the next 12 months. He is avoiding U.S. equities, but said the best opportunity lies in investing in gold . (Watch the video for the full interview.)

Investor Spring Cleaning - A CNBC Special Report
Investor Spring Cleaning - A CNBC Special Report

“We’re having steep declines still in sales, earnings, output and employment and this is a different recession than the garden-variety inventory recessions,” he said.

“This has been the worst three quarters in economic growth in the last 70 years.”

Ablin’s Sector Recommendations:

Materials

Technology

Consumer Discretionary

Disclosure:

No immediate information was available for Ablin or Tice.

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Top Consumer Discretionary Stocks:

Wal-Mart

Target

Costco

BJ's Wholesale Club

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Disclaimer