Markets zigzagged on Thursday after a weak holiday outlook from Wal-Mart, a drop in jobless claims and big tech news. How should investors be positioned? Jerry Castellini, president and CIO of CastleArk Management, shared his market insight.
“Analysts and investors just don’t see the potential that comes out of massive inventory liquidation and job cuts,” Castellini told CNBC.
“We don’t appreciate how big the bounce is going to come on the earnings side. So we tend to always underestimate and now it’s likely to happen in the next three or four quarters, much better than expected earnings—and that will drive the market higher.”
Castellini said he still sees more room in most general sectors for earnings surprises, which is a “catalyst” for a better overall market.
Castellini’s Plays:
Apple
Qualcomm
Anadarko
PetroHawk
TJX
Kohl’s
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Disclosures:
No immediate information was available for Castellini or his firm.
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