Wall Street indices at record highs: where to invest now?

The U.S. Stock Market climbed to yet another high on Pfizer’s big news this morning. But Cerity Partners’ Jim Lebenthal says there’s still plenty of opportunities for investors to make good money.

Lebenthal’s remarks on CNBC’s ‘Halftime Report’

On CNBC’s “Halftime Report”, Lebenthal said the reopening trades still had more room to run despite the broader indices hitting consecutive highs every day.

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We’re just starting with the 2.0 of the reopening trade. That’s why you see the airlines on fire. That’s why you see the casinos on fire, the hotels, cruise lines. And they’re not at their all-time highs. This is where the money is going to go.

According to Lebenthal, Pfizer’s pill will make the Coronavirus more manageable, thereby accelerating a return to normalcy. He quoted the price action in Wynn Resorts, Alaska Airlines, and Boeing on Friday as examples that businesses are already starting to celebrate the idea that the economy is reopening.  

Lebenthal is confident that even FAANG stocks will sustain momentum in the coming months but says the reopening/value/cyclical trades are a better pick at the moment.

Pete Najarian agrees

Pete Najarian also confirmed the activity in the options market indicates investors are bracing for a move up. During the same interview, he said:

The environment is great; volatility is very low, volumes are absolutely off the charts. In the options world, I’m seeing put protection and huge upside call buying because everything is lining up the way we want it to line up, and that gives them an opportunity to look for upside.

On Thursday, Najarian revealed, 50 million contracts were traded compared to the average of roughly 45 million over the last week. He also agreed that the reopening trades like cruise ships and airlines have a lot more upside from here.