Despite the market rally, portfolio manager Harry Rady of Rady Asset Management said he remains “more bearish than he’s ever been” and is continuing to take chips off the table. On the contrary, Greg Olsen of Lenox Partners said he expects a pullback soon — and is planning to play it.
“It’s been an extraordinary rally,” Rady told CNBC. “[But] even if we’re a little early, we’ve decided to take some chips off the table, raise cash and build some short positions.”
Rady said the market rally is a “head-fake” and that the consumers are not going to go back to “binge-spending” like they had in the past.
“We’re approximately 70 percent in cash,” he said of his portfolio. “The cash position has been built mainly over the last week. As the rally continued, we’ve sold into the rally and put on more shorts.”
However, Rady said he is bullish about one sector: drugs and biotechnology. (See below for his stock pick and areas he would “short.”)
