After seven straight days of positive gains, the Dow looked ready to open higher on Thursday after JPMorgan Chasereported a strong second quarter. The bank’s better-than-expected results followed other winning reports like Intel and Alcoa .
The question, of course, is whether or not this good news will continue, and whether investors should feel confident enough to continue buying stocks as we head into the last half of the year. Both Jay Leupp, senior portfolio manager at Grubb & Ellis AGA’s Realty Income Fund (GBEIX), and Harry Clark, founder, president and CEO of Clark Capital Management Group, say yes. They are bullish on the next six months in the market.
For the remainder of 2010, Leupp predicts an upside of 8% to 10% in the Dow, S&P 500 and real estate investment trusts, as the US economy and US commercial real estate begin a slow and steady three- to five-year recovery. He thinks earnings growth primarialy will be driven by cost reductions and modest revenue growth of 1% to 1.5%.
Leupp favores the recession resistant REIT sectors: apartments, self-storage, manufactured home community and stocks, as well as sectors that are early beneficiaries of an economic recovery, such as malls and lodging. His favorite stocks are:Page 1 of 4 | Next Page