Markets have rallied in the last several weeks, so how should you position your portfolio? Bill Spiropoulos, CEO of CoreStates Capital Advisors, and Bob Auer, portfolio manager of Auer Growth Fund, shared their best investment strategies with investors.
“We’re going to go back to equilibrium and the stage has been set for a powerful run,” Spiropoulos told CNBC. “The only thing that can make me turn negative is people in Washington…[but] if they go home without passing the health care bill, add another 300-400 points [on the Dow] immediately.”
Spiropoulos said the “fire fighting” phase of the crisis is over, as evidenced by the markets, and investors ought to diversify their portfolios.
“Going forward, we’re going to recover and the key to success is to have dissimilar assets—stocks, bonds, and currencies,” he said.
“There are great opportunities and a long-short approach is going to get you the best returns for the least risk. There’s going to be a lot of volatility—this is not going to be a straight up move, you’re probably going to have setbacks of 4 to 6 percent."
"Just when you think that it’s the beginning of a big downdraft, it will end and the markets will move higher,” Spiropoulos added.
Point/Counterpoint from CNBC's Guests:
Auer said he has been positive and bullish in the markets for a long time and told investors to look for companies that are guiding higher and reporting record earnings.
He specifically recommended that investors look into companies such as Amedisys and LHC Group .
“I think [today] is going to be an up day and the bulls are totally in charge,” said Auer.
If the market does pullback, then "people are just nipping at the heels to get in.”
Auer owns shares of Amedisys in his fund.
No immediate information was available for Spiropoulos or his firm.
CNBC's Companies in the News:
- UBS Reaches Accord With US on Tax Evasion Case
Bank of America
- Bank of America Plans Chinese Subsidiary