Jeffrey Kleintop, market strategist for LPL Financial Services, said the industrials sector is one to consider because those companies will benefit from the resurgence of economic activity. Small-cap stocks, or shares of small companies, are safer investments than large-cap stocks, or shares of large companies, because smaller companies have more exposure to the American economy.
Large-cap companies are more dependent on exports, which won't recover as quickly, he said. Corporate and high-yield bonds probably will post higher returns than government bonds, a trend Kleintop said was seen in the second quarter.
Now is a good time for investors to review their asset allocation but not to abandon any long-term plans.
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