Investment Strategies Now: Bull vs. Bear Picks

Sarat Sethi, portfolio manager at Douglas C. Lane & Associates, and David Tice, bear market strategist at Federated Investors, discussed their opposing market strategies and shared how investors can equip their portfolios.

“The financial armageddon is over,” Sethi told CNBC. “You’ve seen Goldman’s [earnings] numbers today and you’ve seen the capital markets opening up.”

Sethi advised investors to stick with the necessities, such as consumer discretionary stocks, and to focus on what consumers are going to use—not only in the U.S. but also internationally.

“You’ve got some stabilization occurring,” he said. “If you focus on certain sectors like the staples, the life sciences and even technology—there are opportunities. Although there will be volatility, there’s going to be money made over the next 2 to 3 years.”

But Tice said he is still bearish and maintains shorting stocks is the only way to go.

“The financial system is functioning only through the good grace of government intervention,” said Tice. “The economy is doing slightly better, however the market discounts that and we don’t think these green shoots are going to turn into trees.”

He advised investors to look into commodities and commodity stocks.

  • Counterpoint: Art Cashin on Why Commodities Are Done


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No immediate information was available for Sethi or Tice.