Stocks were trading flat on Thursday. The Dow turned negative after the Institute of Supply Management's gauge of non-manufacturing activity fell. How should investors be positioned?
Ryan Detrick, chief technical strategist at Schaeffer’s Investment Research, and Mark Travis, chief executive of Intrepid Capital Funds, shared their insights.
“[Markets] continue to look good to us,” Detrick told CNBC.
“There’s so little belief in this rally and as long as we keep seeing that, the markets continues to stair-step higher.”
Detrick said he expects the S&P to reach 1,250 by 2010.
“We think you should continue to buy the riskiest assets,” he said. “We like REITs*—you won’t find a more hated area than commercial real estate. We think the IYR**IYR** provides tremendous appreciation.”
Detrick said he also likes the retailers.
Travis agreed that the market psychology is still negative toward equity markets. He recommended the following stocks for investors.
Travis' Recommendations:
Central Garden and Pet
Prestige Brands
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* Real Estate Investment Trust
** iShares Dow Jones U.S. Real Estate Index Fund
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More Market Views:
- 4 Bank Stocks in 'Good Shape': Chief Investor
- Unemployment May Cause New Recession: Strategist
- Tony Fratto on Job Creation Honesty
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CNBC Data Pages:
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CNBC Slideshows:
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CNBC's Companies in the News:
Bank of America
- BofA's TARP Repayment Could Cause Others to Follow
General Electric
Comcast
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Disclosures:
No immediate information was available for Detrick or Travis.
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