Portfolio manager isn't convinced of the current rally's staying power. But he's sticking to his guns.

 

Roger Nusbaum says he isn’t convinced that the current three-month-old stock rally is more than a brief respite from a longer-term secular bear market.

But that isn’t stopping the portfolio manager at Phoenix-based Your Source Financial from seizing opportunities when they present themselves. Nusbaum last week increased his clients’ exposure to the iShares Dow Jones U.S. Technology ETF (NYSE: IYW).

His client portfolios still generally have around 20% in cash. At one point last fall, that was up to 25% in cash. It was the largest amount on a percentage basis that Nusbaum has ever held out of circulation, he says.

“I’m skeptical for a whole host of reasons that a new cyclical bull market has started,” said Nusbaum. “The extent to which the Fed and Treasury have printed money, issued debt and are monetizing some of that

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Advisor says corporate bonds still have legs, but currency ETFs are not one of his favorites for the new year.

 

"Big Joe" Clark has his wish list for 2009. And it includes some exchange-traded funds that even Santa Claus might find useful as stocking stuffers.

At the top are corporate bonds. In the coming year, the Anderson, Ind.-based advisor is expecting investment-grade corporates and high yield debt markets to perform like stocks do in more-normal times.

As a result, Clark is buying more of the iShares iBoxx Investment Grade Corporate Bond Index (NYSE: LQD) in client portfolios. It's a fund he held during the latter half of 2008.

At the same time, Clark is initiating new positions in the iShares iBoxx High Yield Corporate Bond Index (NYSE: HYG).

"Both are moving up in terms of prices," he said. "That means their yields are dropping some. But they're still yielding much better than Treasuries

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