The growth trade (selling treasuries and buying into equities based on the strength of the economy) in the U.S. is going to be dependent on the emerging markets, said Ronald Weiner, founder and CEO of RDM Financial Group.
“Our theme is pretty clear: All of a sudden, the tail is wagging the dog,” Weiner told CNBC. “If the emerging markets have a strong year, continue to grow and do well, then a lot of U.S. companies are going to benefit and we’re going to have a good market.”
Investors who want to profit from the trade don’t need to look any further than the large-cap stocks that trade domestically such as Caterpillar and Peabody Energy , Weiner said.
“The companies that sell to these emerging markets are going to do fabulous," he said. "So you don’t have to go to the emerging markets to make money, you can do it right here in the U.S."
Scorecard—What He Said:
- Weiner's Previous Appearance on CNBC (Dec. 14, 2010)
More Market Intelligence:
- Double-Digit Returns This Year: BlackRock's Doll
- A Way to Beat the Market: Own Stocks Just for One Day
- How to Play Doug Kass’ 2011 Surprises
CNBC Data Pages:
Monday's Top Dow Gainers (As of Noon):
Bank of America
No immediate information was available for Weiner or his firm.