Investing in the U.S. for a global recovery

David Ginther's shifts toward economically sensitive sectors like technology, financials and energy services. JPMorgan "a survivor and consolidator"

Sonita Horvitch 30 September, 2009 | 6:00PM

David Ginther, senior vice-president at Waddell & Reed Investment Management Co., has been increasing his holdings in economically sensitive stocks in the U.S. dividend portfolios he manages, on evidence that the global economy is indeed recovering.

He has been boosting his holdings in technology, consumer discretionary stocks such as retailers, banks and energy services companies. "These stocks were particularly hard hit in the stock market decline because of their economic sensitivity, and some major companies in these areas have represented and continue to offer good value," he says.

In the defensive sectors, Ginther has reduced his weighting in consumer staples. "It remains an overweight position, as these companies are good dividend payers." He has little exposure to health care, another defensive area. "I consider that the pharmaceutical companies are facing headwinds with a paucity of new products and competition from generic drugs." He also has a low weighting in utilities.

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Sonita Horvitch

Sonita Horvitch  

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