For some investors, it's all about the momentum. The bigger the crowd, the better. John Calamos is not one of those investors.
In fact, the 70-year-old CEO of Calamos Asset Management says there's just too much new money flowing in to commodities for his liking right now -- crude oil prices for instance are up some 27% in two months -- so he's playing the producers rather than the crowded commodities. He likes miners and energy exploration names, such as Apache (APA).
"We've been doing growth investing for 20 years now," Calamos says. "This is probably the highest weighting we've had in energy, in the commodities sector, and a lot of that is due to the fear of a weak dollar, so it's a bit of a currency hedge in there."
At the same time, Calamos also likes tech, saying lean companies that are sitting on cash will eventually invest in themselves to improve productivity. While he admits that profit margins are unlikely to go much higher, he thinks, at this phase of the cycle, that they should prove to be sustainable.
And if you add in some P/E expansion from a market that's currently offering no premium for growth, we will see this rally continue.
"We think the technology stocks will continue to do well ... as the economy improves," he says.
Calamos is underweight health care, but one name he owns is Novo Nordisk (NVO). "We're looking for global companies with global footprints, whether they're here in the U.S. or elsewhere," he explains. "And that's a good example of one that has a great reputation and has continued to grow through the years."
For more of Calamos' thoughts on the market, watch the accompanying video in which he details his views on growth, value and other topics.
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