John Hussman, portfolio manager at Hussman Strategic Growth Fund, and Art Nunes, market strategist at IMS Capital Management, offered their economic outlooks and investment advice.
“We shifted back to a fully defensive position last week,” Hussman told CNBC. “I’m extremely concerned that we are in a very brief lull between resets.”
Hussman said the $68 billion repayment of the TARP is merely a “thimble” in a $12 trillion banking system and said “we’re likely to see further defaults in a second wave.”
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He suggested investors look into stock with consistent revenue growth and margins, "because profit margins from 2007 are unlikely to come back.”
Hussman said the health care sector continues to be relatively defensive.
Nunes said as the US dollar has broken its year-long uptrends and commodity prices are heading back up again, energy stocks are “a great place to be.”
No immediate information was available for Hussman or Nunes.
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