Markets retreated on Monday in a wobbly session, as investors sorted through the fallout of the Dubai news and the weekend retail sales numbers.
Phil Orlando, chief equity market strategist at Federated Investors, shared his insights.
“We went all-in during late September, so the stock and bond fund has an 80-20 percent mix,” Orlando told CNBC.
“This Dubai situation, we think, is noise. …The hit potentially to the U.S. banks are about $10 billion for Dubai, and by comparison, AIG was $180 billion. So we think this little hiccup we’ve seen in the markets may represent a nice buying opportunity.” (Counterpoint from Dennis Gartman: Dubai market fear has "legs.")
Orlando thinks the S&P 500 can hit 1200 in the next few months and said he is exposed to the higher beta areas.
“[We like] technology, consumer discretionary, financials and materials,” he said. “We like stocks over bonds—we particularly like emerging markets—we’ve got nice solid overweights in both large cap and small cap internationals. We are fully invested at this point.”
- Watch Orlando's Latest Appearance on CNBC (Nov. 23, 2009)
More Market Views:
- Dennis Gartman: Commodities Outlook after Dubai
- Market Tips: Buy on Dubai Crisis
- Pisani: After Dubai, US Markets Calm
CNBC Data Pages:
CNBC's Companies in the News:
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Bank of America
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No immediate information was available for Orlando or his firm.