Byron Wien, chief investment strategist for Pequot Capital, expects oil prices to rise amid an economic rebound next year.
He told CNBC that energy prices have essentially bottomed, though they could slip a bit further.
“I think they’ll be higher next year, possibly a lot higher, because I think the world economy will recover late in the year.”
As a result, Wien views energy stocks as attractive. But he sees corporate bonds as the “most attractive” investment area.
“You get a very good current return, close to 10 percent in quality corporate bonds, and the possibility of capital appreciation as well.”
Stocks won’t be able to recover before corporate bonds, Wien maintains.
As for municipal bonds, “yields are irresistible: 5 percent triple tax-free,” he says. “But the other side of this is that a lot of state and local governments are in terrible shape.”
Wien foresees a slow economic and market rebound.
“I think the economy’s going to recover, and the market’s going to recover,” he says.
“But it isn’t going to be the snapback recovery that we’ve seen in earlier cycles.”
If the incoming administration's fiscal policies are appropriate, the U.S. economy could begin to grow again in 2010, says NYU economist Nouriel Roubini.
"The only risk is that the recovery of growth could be so weak that it feels like a recession even though we are technically out of it," Roubini told U.S. News.
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