These Sectors Poised to Rise Over 6 Months: Strategist

Markets turned mixed in tepid trading on Monday. How should you position your portfolio? Tyler Vernon, chief investment officer at Biltmore Capital and Frank Holmes, CEO and chief investment officer at U.S. Global Investors shared their investment strategies.

“We think this market is going to continue to trade sideways,” Vernon told CNBC.

“As we continue to move forward in the second half, we’re going to have some problems.”

Vernon said P/Es typically start contracting toward the year-end into a bull market.

“Unemployment is going to stay high and savings rates are going to continue to stay high,” he continued.

“Companies are doing okay, but it continues to be the bottomline cost-cutting growth rather than the topline growth—so we’re very neutral and we continue to think that this is going to go sideways.”

In the meantime, Holmes said money supply has turned up, and any correction is strong for stocks and commodities.

“Whenever you’ve had massive credit contraction, it takes many years before you get to your cyclical patterns,” he said. “But within that, you get these substantial rallies that take place.”

Holmes said seasonally, investors should expect commodities like oil and naturalgas to perform well over the next six months.

More Market Intelligence:

CNBC Data Pages:

CNBC Slideshows:


CNBC's Companies in the News:


  • AIG to Sell Alico to MetLife for $15.5 Billion, Repay Fed


  • McDonald's Same-Store Sales Rose 4.8% in February


Morgan Stanley

  • Citigroup Exec to Join Morgan Stanley: Report


  • Kraft Under Probe Over Cadbury Deal in UK: Report


No immediate information was available for Holmes or Vernon.