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Jim Paulsen: I like the emerging markets. They’ve been so terrible, no one likes them. But they have had a good year. I like the industrial sector. The problem is that the industrial stocks have done so well, which makes you a little leery.
Doug Ramsey: [Technology] is our No. 1-rated sector. … Those are kind of odd bedfellows to have cyclical growth [stocks] and technology at the top and then health care. I think industrials look interesting.
Biff Robillard: I think that individual investors would be wise to remember that the market does present buying opportunities, it does correct. But we’re concerned that there’s a disappointment coming and we will fulfill the age-old proverb that a bull market goes up with nobody on board and a bear market comes down with everybody on board.
Q: What is the impact of potential higher interest rates when you’re choosing between equities and bonds and what that would potentially mean for next year.
Erica Bergsland: We think the economy will be strong enough that rates probably will go up a bit next year, which means that returns on bonds could be lower than that already-low rate. So I think, as Russ and others have pointed out, it’s a clear buying opportunity on stocks. Stocks on their own aren’t clearly cheap, but it’s probably a better deal than bonds over both the short and the intermediate term.
Patrick Kennedy • 612-673-7926