Editor's note: As part of our partnership with Nightly Business Report, TheStreet's David Peltier will appear on NBR Monday (check local listings) to reveal his favorite stocks for riding out the rest of 2012.
NEW YORK (TheStreet) -- Stocks have rocketed out of the gate in 2012. We're just about to close the book on the first quarter and the S&P 500 is up about 12% -- which, in most cases, would be considered a successful year, much less a quarter.
And in fact, when I think about the rest of 2012, I don't foresee an outcome where the market will give up all its gains or end up 20% or more for the year. Rather, I think it's likely we'll enter a more choppy, sideways trading environment over the next couple of quarters, as stocks digest recent gains.
With that in mind, I believe the best strategy is to take some profits in the early winners of 2012 and rotate into some high-quality stocks in sectors that have lagged year-to-date.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV