Tom Forester of the Forester Value fund says he’s still finding value in the market after the big run-up, and one area he’s focused on is technology.
In an interview with CNBC, Forester says he likes value tech stocks, citing Microsoft and HP as companies that look attractive. “We think in almost any kind of market there’s ways to make money,” he said, noting that his fund gained 70% over the past decade while the S&P 500 was in the red.
As for financial stocks, Forester says they should fare alright through the first few months of 2010, but will then run into trouble.
“We’re concerned about home prices starting to head back down, now that a lot of the programs are off,” he said. “We also think once the Fed stops [supporting] Fannie/Freddie … you’ll see mortgage rates come back up and we think that’s going to lead to pressure on the banks and probably more losses on a lot of the real estate — the same problems they had last year.
For the first quarter, Forester says he does like some insurance firms and some banks in the financial sector. The question is what will happen when the stimulus wears off, he says.