The stock market is going to chase its all time highs this year and next, according to Ted Parrish, co-portfolio manager at Henssler Equity Fund.
“The earnings cycle is moderate, but we’re still going to get growth,” Parrish told CNBC. (Scroll down to see his full picks.)
In the meantime, Channing Smith, vice president and co-manager of Capital Advisors, said equity gains are going to be “more tempered” going into the second half of the year.
“We expect rising interest rates—the Fed is going to step away from QE [quantitative easing] on June 30th and someone’s going to have to fill the void there,” said Smith.
“And with corporate profit margins at the highest levels we’ve seen in years—with rising commodity prices and central banks around the world increasing their rates—we expect margins to come off somewhat, so we’re taking a defensive stand.”
Smith’s Picks:
Johnson & Johnson
Ford
BlackRock
Parrish’s Picks:
Chevron
Kimberly-Clark
Cisco
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Scorecard—What They Said:
- Parrish's Previous Appearance on CNBC (Mar. 4, 2011)
- Smith's Previous Appearance on CNBC (Mar. 21, 2011)
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More Market Intelligence:
- Stock Valuations Are Still 'Quite Reasonable': CIO
- Pullback Is Correction in an 'Ongoing Bull Market': Pro
- Buy the Dips—Markets Are 'Long and Strong': Strategist
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CNBC Data Pages:
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Disclosures:
Parrish owns shares of JNJ, F and BLK in his HEQFX Fund.
Smith and his family own shares of JNJ, F and BLK directly or via Capital Growth Fund.
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