Stocks soared Wednesday after signs emerged of a strengthening global economy, and investors shrugged off news of a decline in private sector jobs in the U.S. Eric Schoenstein, co-portfolio manager at Jensen Portfolio, and Charlie Smith, chief investment officer of Fort Pitt Capital Group, discussed their insights.
“What we think about when we’re thinking about investment is time horizons,” Schoenstein told CNBC.
“If [investors] have the right time horizons, there are opportunities out there, even with some of the subdued things we’re hearing.”
Schoenstein favors the health care and technology sectors, in addition to companies with strong international exposures, fueled by emerging economies. (Scroll down for his full stock picks.)
Smith's View: 'Another Up-Cycle'
In the meantime, Smith said the key for markets going forward will be determined by earnings in 2011.
“Since April, we’ve seen earnings estimates begin to trail off. We’re using $85 number for this year; if we can get to $90 next year, you put a 14 multiple on that, this market can move 15 percent higher.”
Smith told investors to avoid housing, commercial real estate and big-ticket consumer companies with a domestic focus.
“In the last month and a half, we’ve seen a slowing overseas but there’s nothing to say that can’t reaccelerate…we may be beginning to see another up-cycle [in China],” he said.
Schoenstein’s Investment Ideas:
Oracle
Emerson Electric
PepsiCo
Abbott Labs
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Scorecards—What They Said:
- Schoenstein's Previous Appearance on CNBC (May 11, 2010)
- Smith's Previous Appearance on CNBC (Jun. 4, 2010)
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Market Views—Across the Board:
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CNBC Slideshows:
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CNBC Data Pages:
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Disclosures:
No immediate information was available for Schoenstein or Smith.
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