Emerging markets have had their run and now it’s time for investors to turn back to domestic US stocks, said David Katz, chief investment officer at Matrix Asset Advisors, and Ethan Anderson, portfolio manager at Rehmann Financial.
“Right now, we favor domestic markets—it just seems to be a bit more stable and a bit more certain of a story,” Anderson told CNBC.
“Inflation is not a big issue here…so right now, it seems like our economy is a little bit more controlled than a lot of these emerging markets.”
Anderson also said he expects to see jobs and economic growth in the U.S.
“We’d also look at some countries in Europe such as Germany and Norway…they have a lot of positive characteristics,” he suggested. “Now can be an opportunity to get in with them as well.”
In the meantime, Katz said while the emerging markets may be a good place to be longer-term, investors should expect a lot of volatility going forward.
“Don’t chase the [emerging] markets after they’re up 80 to 100 percent and not expect some sort of pullback,” advised. “We think in a year or two years from now, they’re going to be better, but we still like the U.S markets best for 2011.”
Scorecard—What They Said:
- Anderson's Previous Appearance on CNBC (Dec. 22, 2010)
- Katz's Previous Appearance on CNBC (Jan. 3, 2011)
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CNBC Data Pages:
No immediate information was available for Anderson or Katz.