Stovall said he expects an improvement in overall GDP expectations based on the 'Cash for Clunkers' program, more stimulus taking affect, and the continuing weaker dollar.
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“We’re going to have irregular growth over the next several quarters,” he said. “It will be more like a ping pong ball bouncing on a table rather than being a pronounced W-[shape].”
In the meantime, Schoenstein said companies that have businesses overseas have the ability to be able to perform in any environment.
“So if the weaker dollar is present they can get the overseas revenue, and they have the diversity when the dollar is stronger to get it locally as well,” he said.
Schoenstein said he doesn’t see a double dip coming for the markets and told investors to focus on quality, growth companies with strong balance sheets, dominant market positions and global reach.
“A probability of a double dip is a 25 percent or less,” he said. “It’s more about whether or not we have a pause in the recovery rather than an actual double dip. And a pause will allow companies with global franchises to take advantage of opportunities.”
Schoenstein owns shares of CL, ABT, EMR and ORCL.
No immediate information was available for Stovall or his firm.