Buy the 'Riskiest' Assets—Markets Will Move Up: Strategist Published: Thursday, 3 Dec 2009 | 4:35 PM ET CNBC News
How should investors be positioned?
Ryan Detrick, chief technical strategist at Schaeffer’s Investment Research, and Mark Travis, chief executive of Intrepid Capital Funds, shared their insights.
“[Markets] continue to look good to us,” Detrick told CNBC.
“There’s so little belief in this rally and as long as we keep seeing that, the markets continues to stair-step higher.”
Detrick said he expects the S&P to reach 1,250 by 2010.
“We think you should continue to buy the riskiest assets,” he said. “We like REITs*—you won’t find a more hated area than commercial real estate. We think the IYR** [IYR 44.21 -0.42 (-0.94%) ] provides tremendous appreciation.”
Detrick said he also likes the retailers.
Travis agreed that the market psychology is still negative toward equity markets. He recommended the following stocks for investors.
Central Garden and Pet [CENTA 8.82 0.04 (+0.46%) ]
Prestige Brands [PBH 7.13 --- UNCH (0) ]
* Real Estate Investment Trust ** iShares Dow Jones U.S. Real Estate Index Fund
Buy URE at great peril. The article says IYR and REITs, but URE is neither. Also, it references holding until 2010, which by my calculations is 3 weeks away. BTW, for every #$%$ article that you can find pumping the overvalued REIT sector, I can find 5 telling you to run away as fast as you can.