Tired of watching the small and mid caps pull away from your S&P 500 index fund or ETF? Well, at least one 5-star fund manager says the time is right to build up your large-cap exposure in the face of slower-than-expected GDP growth.
Jerry Jordan of the Jordan Opportunity Fund see U.S. GDP growth of around 2.5%, significantly less than the 3.5% - 4% consensus -- and he's just fine with that. Why? Because this, along with a lower consumer sentiment, keeps inflation intact and helps push out rate hikes by the Fed. Overall, this creates a market that, he says, is likely sideways for a while but not too risky.
How is he positioning himself in this market? Jordan says, "You've got to be long on the consumer side," either with products that are new and different (like the iPad) or those being bought by the top 20% of wage-earners.
"You've got to stick with companies that are selling something that people can't do without," he says. He loves technology right now, particularly anything to do with the smartphone or tablet PC. He says the tablet computer is going to put the notebook out of business -- and not just the iPad but almost everything involved in the space, from smartphones to broadband plays and chipmakers to content providers.
An animal of mobile computing and data consumption has been unleashed, and he pities the fool who doesn't embrace it.
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