Where to Invest Now: Stock Pickers

With stocks slowing climbing back up, should investors start putting cash to work again or should they continue to sit back and wait for a pullback? Portfolio managers Robert Loest of Integrity, Growth & Income and Bob Auer of Auer Growth Fund shared their opposing market outlooks.

“In regards to the fundamentals, we’ve seen from Federal Reserve flow of funds data in the first quarter, we have plunged into massively negative credit territory,” Loest told CNBC. “There are reasons to worry.”

Loest said there is “too much” destruction of asset value, credit and change in consumer behavior for the economy to turn around anytime soon.

In the meantime, Auer said he is still bullish on the markets and sees more upsides from here.

“There’s a ton of cash that wants to get in this stock market [and with] any little pullback, it’s going to be nipping at the butt to get in,” said Auer. “We have a guaranteed recovery in the offering—[we’ve had] 24 recessions in the last 120 years and 24 recoveries.”

Despite their different outlooks, both Loest and Auer shared the following recommendations for investors:

Auer Likes:

Fertilizer Companies

Energy Service Companies

Cubist Pharmaceuticals

Loest Likes:

Big instrument makers for biomedical research companies

Consumer Non-discretionary companies such as:



General Parts


No immediate information was available for Auer or Loest.