Stocks cemented gains Tuesday after the relief following the health care bill news. How should investors be positioned? Eric Ross, managing partner at Watch Harbor Asset Management, and Eric Marshall, director of research at Hodges Capital Management, shared their insights.
“We have a little bit of more room to run, because the Senate needs to approve all the changes that the House made, but then you’re going to see the insurance companies and the service providers scrunched down a little more,” Ross told CNBC.
“The real way to play this is to play the drug makers and the device makers. I think that could be a good bump for biotech, pharma and devices going forward in a couple of years."
Additionally, Ross said he is a fan of the emerging market countries including as China and India.
“We’re very reticent about Europe at this point because we think there’s still more dominos to fall and the Greece crisis is not yet over,” he cautioned.
“The place we like the best is Brazil, because you have an economy that’s growing incredibly fast, demographics is attractive, they’ve got their own natural resources and they’re building up infrastructure as fast as they can.”
In the meantime, Marshall said he is focusing on the smaller-cap companies that are “best positioned” coming out of the recession. (Scroll down for his full picks.)
“We’re looking for the companies that have positioned themselves well during the downturn in that they’re coming out, taking market share and are in better shape prior to going in,” he said.
Kansas City Railroad
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No immediate information was available for Marshall or Ross.