3 Covestor managers featured in IBD article on fiscal cliff

The broadly-read Investor’s Business Daily recently published an article on the fiscal cliff and its impact on investors, quoting three Covestor managers and our very own Mike Tarsala.

Bill Peattie of Peattie Capital commented on what he sees as the market’s over-reaction to the fiscal cliff concern:

“Many terrific stocks with good valuations are reporting strong earnings and yet are being taken down in this environment,” Peattie said. These include Apple (AAPL) and wireless terminals and monitoring equipment-maker Telular (WRLS) — one of his core holdings.

CJ Brott of Capital Ideas explained how he’s positioning for a rebound:

“The current search should be for ETFs demonstrating better-than-average relative strength in their respective groups,” said CJ Brott, chairman of Capital Ideas, a registered investment advisor in Dallas. “They will be the biggest gainers coming off whatever low we set.”

Matt Pierce of Island Light Capital doesn’t expect us to actually go off the cliff:

“I can’t believe that Congress and the president won’t act before year-end,” said Matt Pierce, founder of Island Light Capital in Dover, Mass. “I’d expect the lame-duck Congress to kick the can down he road for the year with respect to tax increases and to override some spending cuts. The economy is too weak to take a fiscal hit.”

And Mike Tarsala had insight on the technical picture:

The S&P 500 will find price support at its July low near 1320, said Mike Tarsala, a chartered market technician at Covestor, a New York-based asset management firm. That translates to 132.00 a share for the SPY.

Read the full article by Trang Ho.

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