Well-known investor and hedge fund manager Kenneth Heebner of Capital Growth management was on CNBC to discuss his views on the overall market and factors that will drive the market going forward.
-- Housing is coming back and that is driving consumer confidence.
-- Consumer confidence and resulting spending will drive the markets up.
-- Improvement in housing and consumer confidence together will also mean that the Fed will be less accomodating and will be raising rates.
-- Both short-term and long-term interest rates will go up.
-- So sectors which will benefit from higher rates will be good places to invest.
-- Sectors like financials had a good run up but are still cheap and will benefit from rate increases.
-- Another attractive area for investment: automobiles. Consumer confidence and higher average automobile age will continue to drive auto sales forward.
Here is the video: