Jason Pride, director of research at Haverford Investments and Dean Barber, founder and president of Barber Financial Group told investors how the month of September will be for markets and how they should position their portfolios.
“No one says that this market can always move in a straight line upward … but we’re very much bullish,” Pride told CNBC.
Pride expects that the third and fourth quarters of this year are going to surprise to the upside, both economically and earnings-wise. Additionally, Pride said 2010 will also be positive because of the continuing round of stimulus.
“The stock market is still only a hair over halfway through the rebound just at normal levels—giving it a lot of room for appreciation,” he said. “That doesn’t mean it has to be in a straight line—September could end up being a bad month. But we would use that as a buying opportunity.” (Read below for his full stock picks...)
In the meantime, Barber said investors should be cautious of a short-term inflation and expects to see the dollar strengthen. The longer-term issues will be deflationary issues as opposed to inflationary issues, he added.
"So I don’t see gold being a long-term play or something that is going to get much higher than where it is right now,” he said.
“We do hold some gold and some commodity stocks—but we’re really trying to stay on the short end of the yield curve in treasury and high quality bonds right now," he said. "We’re really fearful that that markets may have hit their peak at the 9,600 level last week so we’re more bearish in the short-term and think that there’s a lot of pain to still work through.”
Pride Likes:
Caterpillar
Union Pacific
Air Products & Chem
Abbott Labs
Becton Dickinson
CVS Caremark
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Disclosure:
No immediate information was available for Barber or Pride.
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CNBC Slideshows:
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