With the Dow Jones industrial average nearing the 20,000 milestone, some investors may be pondering their next move.
According to Sarah Ketterer, CEO and portfolio manager at Causeway Capital Management, Qualcomm would be a good bet.
She told CNBC’s “Closing Bell” on Wednesday that she believes the company is very well positioned for the next several years thanks to its dividend yield and expected increase in mobile usage. She also believes the company is making a “savvy” acquisition in NXP Semiconductors.
“They’re technologically well situated for a world of internet of things,” she said.
Ketterer also likes Royal Dutch Shell and SK Telecom, as well as Barclays, which she said will benefit from the strong U.S. dollar.
In fact, she suggests investors look abroad because foreign markets are less expensive than the United States and the dollar is strengthening.
“They do need to see some improvement in profitability and return on capital, but look what’s happened. The dollar has been so strong. …. That gives foreign companies, many of them, an edge in terms of being able to boost profitability,” said Ketterer.
Chris Retzler, portfolio manager at Needham Funds, has his eye on health care and technology. He specifically likes Veeco Instruments, which supplies the LED market and looks like it may be getting some big international orders, and Pure Storage, an internet-of-things play.
He also likes Gilead Sciences, which he called “very cheap.” While the health-care sector has been under fire over drug pricing, he thinks companies could strike a bargain with the incoming Trump administration.
“I think repatriation, I think deregulation is something that they could get if you had some price decreases. And if you could get that negotiated deal, I think health care is going to be great long term,” he told “Closing Bell.”
