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 - Get Report), 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