Stocks or commodities? David Chalupnik, head of equities at First American Funds, told investors where they should be looking.
“[Commodities] could certainly power the equity markets higher with the declining dollar, but lower quality stocks continue to power this market higher,” Chalupnik told CNBC.
“When I say lower quality, I mean those are stocks that've really gotten beaten up in 2008. They continue to power this market higher and that will continue through year-end.”
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Chalupnik said the weak dollar could hurt stocks down the road, but it hasn’t affected the rally thus far.
“And certainly the fiscal and monetary stimulus were needed during this crisis,” he said. “The question will be taking that off and supporting the dollar as we move into 2010—probably the second half of 2010.”
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No immediate information was available for Chalupnik or his firm.