NEW YORK (TheStreet) -- Palisade Capital Management Chief Investment Officer Dan Veru is using the budget impasse as a buying opportunity, reflecting the view that markets may rise once Washington's political impasse is broken.
Veru, whose firm manages around $4.3 billion in total assets, said the "sideshow" in Washington has become a buying opportunity. The Palisade fund manager says the gradual global economic recovery in Europe and Asia coupled with accommodative monetary policy from the Federal Reserve supports his call that stocks may be poised to move higher.
"We are buying on a stock by stock [rather than a sector] basis," Veru said in a phone interview. "And if the market sells off, it makes companies we like more attractive. I firmly believe that when all this blows over, and it will blow over, that the market will be higher by the year end."
National Securities chief market strategist Donald Selkin echoed Veru's outlook explaining that he's also buying in the dips on the basis that political machinations are short-term phenomenons. National Securities oversees $4 billion in funds. "We don't see too much upside but fourth quarter earnings should still be up 8-9%," he added.
Selkin likes energy stocks such as Exxon Mobil (XOM - Get Report), pharmaceutical names such as Merck (MRK - Get Report) and tech companies such as Facebook (FB - Get Report) and Apple (AAPL - Get Report) - though he;'s waiting for a pullback in the latter names before adding to his positions. Selkin also pointed to the market's optimism that a deal would be reached, noting that even during the shutdown, the U.S. equity benchmark hasn't fallen far from its five-year high of 1725.52 reached in September.
--By Jane Searle in New York