Where to Invest Right Now: Fund Exec

The fact that companies are issuing more positive guidance is a sign that they are feeling increasingly confident about the economy, Paul Hickey, co-founder of Bespoke Investment Group, told CNBC Monday.

"One of the big overhangs of this market this year was, namely, the lack of clarity, and the lack of an outlook going forward: Companies are becoming more comfortable with their business and their outlook," said Hickey.

Hickey said the percentage of companies issuing guidance overall is at a four-year high, with many more issuing positive, not negative, guidance.

Hickey also said that post-election, everyone expects a sell-off, but he feels the S&P 500 will still hit 1250 and that it's a buying opportunity for stocks.

Hickey recommended buying mattress maker Tempur-pedic , which he said is an indication of a stabilizing housing market. “When you move, you tend to buy a new mattress,” he said.

He said Tempur-pedic is a retail name that is leveraged to the housing cycle, but not a home builder or a bank.

Meanwhile, David Kovacs, CIO of quantitative strategies at Turner Investments, recommended three stocks, all of which are announcing Q3 earnings on Tuesday.

  • F5 Networks , which makes switches for optimizing Internet traffic. “It’s a great growth story, because the traffic on the Internet is ever-growing,” he said.
  • Aflac, the supplementary insurance company, which Kovacs said has developed a niche business in Japan for child endowment.
  • Waters , a mid-cap health-care company in the US, that provides a concept that’s called a liquid chromatography, which is used in quality control for pharmaceuticals and other applications.


Disclosure information was not available for Hickey or Kovacs or their firms.