Ablin said there needs to be an improvement in the housing market and banks need to raise capital in order for the economy to see strength and avoid a second bottom.
He told investors to look into corporate and high-yield bonds.
“I would prefer investors to buy mutual funds instead of ETFs,” Ablin said. “As ETFs are having trouble in some of their execution—I would be inclined to buy a high-yield open-end mutual fund.”
In the meantime, Lee said stocks could end up being in a more “serious correction” and told investors to position for a “very strong” year-end.
“Housing is starting to stabilize, so as those start to fade, you’re going to start seeing some decent profit beats in the second half [of the year],” said Lee. “We’re looking for an above-trend growth in the next 4 to 6 quarters and that’s very healthy, real GDP growth.”
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