Buy in the Dips, Urges Palisade Capital's Veru
NEW YORK (TheStreet) -- Palisade Capital Management Chief Investment Officer Dan Veru is using the budget impasse as a buying opportunity, reflecting the view that markets may rise once Washington's political impasse is broken.
Veru, whose firm manages around $4.3 billion in total assets, said the "sideshow" in Washington has become a buying opportunity. The Palisade fund manager says the gradual global economic recovery in Europe and Asia coupled with accommodative monetary policy from the Federal Reserve supports his call that stocks may be poised to move higher.
"We are buying on a stock by stock [rather than a sector] basis," Veru said in a phone interview. "And if the market sells off, it makes companies we like more attractive. I firmly believe that when all this blows over, and it will blow over, that the market will be higher by the year end."
National Securities chief market strategist Donald Selkin echoed Veru's outlook explaining that he's also buying in the dips on the basis that political machinations are short-term phenomenons. National Securities oversees $4 billion in funds. "We don't see too much upside but fourth quarter earnings should still be up 8-9%," he added.
Selkin likes energy stocks such as Exxon Mobil
--By Jane Searle in New York