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Diversify Your Portfolio With These Stocks: Strategist (Pt. 2)

How should investors position themselves following the big run-up in stocks? Ronald Weiner, president and CEO of RDM Financial Group, and Malcolm Polley, CIO of Stewart Capital Advisors, shared their advice. (See below for Polley's stock picks.)

“It’s surprising to see the market run as far as it has, as fast as it has, with no real meaningful correction,” said Polley. “We would not be surprised to see a correction—we’re a bit concerned that the markets might have gotten a bit ahead of itself.”

Polley said investors should consider taking profits off the table and look for options in the next leg up. He suggested sectors like basic materials, engineering, construction, software and health care.

“We do think the economy is improving and we do believe we’ll get recovery as we get into the end of the year,” he said. “So you should be participants of the long-term secular expansion of the global economy.”

In the meantime, Weiner said investors should diversify their portfolios.

“It’s time to set your equity portfolio at about 70 percent of the S&P from the volatility standpoint,” said Weiner. “Get diversified—get all over the world…There is some kind of recovery going on but I’d take about 30 percent off if you’re fully invested.”

Polley Likes:

EMCOR Group

McDermott International

CF Industries

The Mosaic Co

Terra Nitrogen LP

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Disclosure:

No immediate information was available for Polley or Weiner.

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