NEW YORK ( TheStreet) -- With contagion fears from Greece's credit crisis roiling global markets and lackluster U.S. economic data giving investors little to feel bullish about, equities hardly seem appealing. However, forecasts are calling for a slight pickup in growth in the second half of the year, which means that there are opportunities to be had in certain sectors of the equity market -- particularly in technology and industrials.
Economists generally agree with Federal Reserve Chairman Ben Bernanke's recent assessment that current drags on the economy are "transitory." Already, economists note abatement in the negative effects of production disruptions from the Japanese earthquake and tsunami on March 11 and weakness from unseasonable and severe weather in the U.S. Greece is widely anticipated to push through the stringent austerity measures needed to receive more financial aid, allowing them to sidestep default and clear contagion concerns.
"Despite the lingering risks of deleveraging, the nonfinancial corporate sector is having a robust recovery in profits and relative valuations are attractive; so as the macroeconomic outlook stabilizes, equities should regain upside momentum," said Barry Knapp, head of U.S. equity strategy at Barclays Capital in a recent third-quarter outlook note.
Knapp sees a rebound in auto production as driving better growth in the third quarter, but sees growth concerns persisting into the fourth quarter since even
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