Investment Ideas from CNN Appearance

After taping a segment with Christine Romans this past week that was scheduled to air on "Your Bottomline" on Saturday morning I found out the show was cancelled due to storm coverage, which makes perfect sense.

BUT, since the work was done, why not share with you some of the highlights. Here are some of the questions and my answers.

How high can the market go?

Based on earnings of $110/share for the S&P 500 and a P/E ratio of 15 that puts the index at 1650. This is a 9% increase from current levels and and new all-time high for the index.

Where are the best opportunities?

If the market continues the current uptrend I see opportunities in the high beta (riskier) sectors. The financials, airlines, emerging markets, and technology. At the same time some of the sectors I have been overweight I continue to like: high dividend stocks, REITs, and energy.

Where should we avoid?

Anything and everything dealing with US Treasury bonds (interest rates will increase hurting US Treasury bonds). Also underweight utilities and consumer staples.

Other reasons to be bullish?

Low interest rates (artificially held down by the Fed), below average valuations, and the retail investor under invested. The market will continue to climb the "wall of worry"; once sentiment is extremely bullish it will be time to sell. Investors must also learn to ignore headline risk (Greece, Debt Ceiling, China Slowing, etc.), because each situation has been a buying opportunity rather than a reason to sell.