Chadha said his biggest “overweights” are in the financials and industrials. He added that he has “smaller overweights” in the technology and the consumer discretionary sectors.
In the meantime, Kantor also said he expects the markets to go higher.
“You’ve still got a great combination of zero rates from the Fed, a nice economic recovery, and a very good corporate profitability,” he said.
But, Kantor cautioned, “if one of those things start to fade, we’re in trouble—and the most likely one is probably the prospect of Fed tightening.”
He said that while he doesn’t expect the Fed to tighten rates in the first half of the year, the markets will start to price in the Fed tightening by the middle of the year if the U.S. labor market recovers significantly.
“And then it gets more difficult for the stock markets,” Kantor said.
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No immediate information was available for Chadha or Kantor.