Navellier, Dreman, and Siebert: What to Expect in 2011

Top growth investor Louis Navellier says he’s bullish heading into 2011, and is high on multi-national U.S. firms and technology companies.

“I think you can invest in a lot of big company stocks here in the States and feel good about it because such a high percentage of the S&P earnings comes from beyond our borders,” Navellier tells the Palm Beach Daily News. “You can actually benefit from that if you buy companies like McDonald’s, Dr. Pepper or Heinz. Even something like a Direct TV. Then you have all the big multinationals like Ford, John Deere, Cummings. These are companies that make a lot more money overseas than they do here.”

Navellier also says he sees better-than-expected U.S. GDP growth of 3.8% in 2011.

The article also includes forecasts from two other prominent strategists, David Dreman and Muriel Siebert. Dreman says he’s not a “roaring bull” on stocks in 2011, but adds that he does think the market “will do somewhat better. And we are fully invested.”

Dreman says one area he’s keying on is oil, and “companies mainly in oil exploration and development that have major reserves in the United States and elsewhere. A company like Apache Oil has major reserves in the United States and abroad. When oil prices fell to around $35 a barrel, people thought those oil prices would stay low for a decade to come. Now oil is up to around $90 a barrel.”

Dreman also says world markets are pricier than U.S. markets right now, and says he would have about 20% of his portfolio invested in world markets and the rest in the U.S.

As for Siebert, she says she sees a “decent market” next year, in part because companies are using built-up cash to up dividends. “If companies are going to increase their dividends, people are going to say, ‘Hey, I’ll be getting more from them than I’m getting at the bank,'” she says. “And they’ll have a chance that if the company has a good business record, been in business for 50 or 100 years and is in an important industry, its share price could go up too.”

Siebert says she thinks “there are a lot of good companies to invest in out there. But you’ve got to do your research before buying.”

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