Where to Invest Now: Bull vs. Bear
“We’re facing a lot of strong headwinds than we have before,” De Groote told CNBC. “The increase in cost of capital and personal savings rate will adversely affect corporate earnings—and earnings are going to drive the stock market. Having a lot of money on the sideline helps stock prices in the short term, but not in the long term.”

In the meantime, Picard said she feels bullish about the market, saying she expects the S&P to reach 1,100 by the end of the year. She said the technology sector looks especially attractive.

“[Technology companies] didn’t see the same type of overspending that we saw in the last cycle,” said Picard. "When you look at the sector, it’s trading at a discount to the overall S&P valuation so right now, these tech names look attractive on a valuation basis. I also think there’s some pent-up demand yet to come. A lot of companies were saying they are pushing back spending on technology. So I think we’ll see additional spending in the second half of the year.”

De Groote and Picard recommended the following stocks and sectors to investors:

De Groote Likes:

Technology

Health Care

Energy

Basic Materials

Picard Likes:

Technology

Health Care

Ansys

Stericycle

Disclosure :

No immediate information was available for Groote or Picard.

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