With small-cap stocks thus far outperforming their large-cap counterparts off the market's lows, is now the time to invest in American blue chip companies?
Brent Wilsey, president of Wilsey Asset Management, and David Katz, chief investment officer of Matrix Asset Advisors, shared their market insights with CNBC.
Wilsey said investors are focusing too much on the negativity in the markets, and should instead take a long-term approach. He said blue chip companies are in the "best place they've been in a long time," and predicts their growth will continue until 2014.
"They've got high cash flow, low debt [and] low inventory," he said.
Katz said that large caps—relative to small caps—are the most attractive they've been in 30 years, adding there are strong businesses selling at 12 to 13 times their earnings and carrying low risk.
"We think that's going to be the place that rallies best over the next 12 to 18 months," he said.
Wilsey said investors are focusing too much on the negativity in the markets, and should instead take a long-term approach. He said blue chip companies are in the "best place they've been in a long time," and predicts their growth will continue until 2014.
"They've got high cash flow, low debt [and] low inventory," he said.
Katz said that large caps—relative to small caps—are the most attractive they've been in 30 years, adding there are strong businesses selling at 12 to 13 times their earnings and carrying low risk.
"We think that's going to be the place that rallies best over the next 12 to 18 months," he said.
Wilsey Likes:
Microsoft [MSFT 28.16 
-0.4375 (-1.53%) 
]
-0.4375 (-1.53%) ]Motorola [MOT 6.74 -0.04 (-0.59%) ] — The company has $8.4 billion in cash and could possibly be bought up, Wilsey says.
-0.04 (-0.59%) ] — The company has $8.4 billion in cash and could possibly be bought up, Wilsey says.Katz Likes:
ConocoPhillips [COP 53.58 -1.09 (-1.99%) ]
-1.09 (-1.99%) ]Coca-Cola [KO 52.60 -0.50 (-0.94%) ]
-0.50 (-0.94%) ]Dell —"Easily the stock can be 50 to 75 percent higher," Katz said.
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