NEW YORK ( TheStreet) -- As we move into the second half of 2013, where is the best place to invest? TheStreet's Lindsey Bell and Stephanie Link, co-manager of the Action Alerts PLUS portfolio, break down where to look for value.
Looking at the macro picture, Link has some expectations: For the U.S. to improve slightly, for Europe to stabilize, for China to continue improving and for Japan to sort out its consumer tax concerns in the next couple of weeks.
Because of this, she wants the portfolio to have exposure to these markets, as well as to U.S. cyclical stocks.
Link suggested that investors look to sectors that have positive momentum, such as aerospace, energy and automotive.One name she likes in particular is Johnson Controls (JCI), for its positive catalysts going forward. With a new CEO taking control Oct. 1 and an analyst meeting on Dec. 18, Link said she wants to hear about restructuring efforts from the new leader. She concluded that the company could shed a couple of its businesses and look to M&A to improve efficiency. The portfolio will remain overweight JCI. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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 Plus 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