Investors could profit from areas such as techs, utilities and insurance stocks, said Doug Roberts, chief investment strategist at Channel Capital Research and Jamie Cox, managing partner at Harris Financial Group.
“It’s still a negative economic environment with high employment and uncertain futures, so people are substituting labor for technology,” Roberts told CNBC, making the case for tech stocks. (Scroll down to see his full picks.)
In the meantime, Cox said he expects more M&A activity to take place among utilities.
“The general utilities have P/Es that are around 9 to 11 so there are a lot of opportunities there,” he added. “And earnings opportunity with utilities still represent significant values and the sector represent good substitute alternatives for people who have been holding up in treasurys for the last couple of years.”
In addition, Cox noted that insurance stocks have “almost doubled” its levels from two years ago.
“Insurance companies are also looking a lot better so they don’t have to reserve against market declines,” he continued.
Scorecard—What They Said:
- Cox's Previous Appearance on CNBC (Dec. 13, 2010)
- Roberts' Previous Appearance on CNBC (Jan. 20, 2011)
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Roberts and his family own a position in the QQQQ. Roberts’ family also own shares of PFE.
No immediate information was available for Cox or his firm.