NEW YORK (TheStreet) - The S&P 500 is attempting to hold small gains Monday despite Japan's shockingly negative third-quarter GDP results. The country is apparently slipping into a recession, leaving U.S. equities as the top investment choice, said Joseph Terranova, chief market strategist for Virtus Investment Partners.
On CNBC's "Fast Money Halftime" show, Terranova said U.S. health care stocks remain a strong investment, as revenue continue to grow. The industry should not be looked as a "defensive" investment.
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Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC, disagreed that European equities provided more value than U.S. equities. European equities deserve a lower valuation and are unlikely to rally without a subsequent U.S. stock market rally as well, he reasoned.
Investors who are focused on the long term should have both domestic and international equities in their portfolio, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. However, for the next 12 months, investors should have more exposure to U.S. equities than to international equities.
The U.S. is still the "driver of global growth," according to Keith Banks, president of U.S. Trust. For that reason, investors should have more exposure to U.S. stocks. He likes financial stocks and the energy sector. Oil is likely to bottom soon, as future production won't come online without higher prices, he said. He believes the S&P 500 will end 2015 near 2,200.
Trading Apple is very difficult, Terranova said. For that reason, investors should simply buy the stock and hold on to it for the long-term, he advised.
Yahoo! (YHOO) could have up to $15 per share of value unlocked in a tax-free spinoff, according to Ironfire Capital founder Eric Jackson, a contributor to TheStreet. Management shouldn't celebrate the recent success Yahoo! has enjoyed from its stake in Alibaba (BABA) , since it was the previous management who made the investment. Instead, they should focus on doing the right things to most efficiently handle the position.