Technology and financial stocks have had their run since the beginning of this market rally so don’t expect to see a strong upward trend to continue going forward, said Jerry Jordan, portfolio manager at Jordan Opportunity Fund. He shared his investment strategy with investors. (See below for his stock picks and fund holdings.)
“What bothers me about tech and financials is that everybody owned tech through the rally last year, the decline last year and the rally this year—it seems like everything’s positive for tech,” Jordan told CNBC.
“On the financial side, we’re essentially in a financial-services secular bear market that started in '06-'07…It’s been a great rally and I think financials will match the market for the rest of the year." But, he added, "I don’t think you’re going to have a lot of value from an alpha standpoint.”
Jordan suggested investors look into sectors such as oil services, materials, mining, gold and health care.
“Energy prices—oil in particular—will work itself into the $80s, maybe high $80s and we’re going to go back to $150 in the next couple of years,” he said. “Supply is constrained—it will be continued to be constrained. Inventories are high right now, but they will be worked down in the next 18 months.”
Recommendations:
Abbott
Celgene
Jordan Opportunity Fund (JORDX)’s Top 5 Holdings:
Powershares Agriculture Fund
Nucor
Massey Energy
Schlumberger
Monsanto
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Disclosure:
No immediate information was available for Jordan or his firm.
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