Kanaly said the U.S. is in a good shape economically for the year, but he is concerned about 2011 when problems may start to arise. He encouraged investors to look into the emerging markets.
“They’ve really taken a beating and we’re going to keep an eye on the carry trade,” he said. “Watch the dollar relationship to all asset class risk.”
In the meantime, Merrill said the continuing sovereign debt issues could derail the bull market.
“But I’m in the bullish camp,” he said. “This is more of a correction and it may have a little more to go—I think this a bull market that’s very well supported.”
Merrill said he likes the high-quality, multi-national names.
“They’re among the cheapest stocks in the market and we like the fact that they can go where the growth is,” he said.
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No immediate information was available for Kanaly or Merrill.