As the year approaches an end, investors are looking at where they should put their money in 2010. Ryan Caldwell, portfolio manager at Ivy Asset Strategy Fund, shared his insight.
“This is the most fully invested we’ve been since the third quarter of 2006 and it’s a reflection of our outlook for the profit cycle,” Caldwell told CNBC.
“While we could get a fairly sluggish economic recovery, there’s actually a good profit cycle occurring on top of it, so we’re trying to position for that profit cycle.”
Caldwell said he is almost “fully invested,” and only has about 5 percent in cash. He added that approximately two-thirds of his portfolio has international exposure.
“We continue to think the prospects for better topline growth are going to be outside the U.S., in places like China, India, Brazil and Southeast Asia,” he said.
Wynn Resorts—"The Wynn business in Macau is flying and they’re looking at being capacity-constrained," said Caldwell. "They have a new addition to their property opening in April, which is capacity that they need, given that their market is growing at 15 to 20 percent in a year-over-year basis."
"So [Wynn has] become a Macau story and not a Vegas story," he said. "We think the stock can reach the low $90s once they reach full capacity."
Taiwan Semiconductor—"If you think about the product cycle and all the new products that are coming out…all the leading edge technologies, TSM is the leader," he said. "It’s not an expensive stock for how well positioned we think they are…We think this stock has a long way to go."
Apple—"It’s in [Apple's] benefit to move over to other carriers like Verizon …and we think some of the other carriers like Verizon can benefit from that," he said.
Apple's iPhone is "in over 90 different countries, but the penetration rate is under 1 percent if you look at their international business. So if they can get their price points right on the iPhone with some of the carriers they work with internationally…you can really have another leg up in handset volume for the iPhone."
- Watch Caldwell's Previous CNBC Appearance (Nov. 20, 2009)
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CNBC Data Pages:
No immediate information was available for Caldwell or his firm.