Investors are missing out on valuable parts of the stock market, says Mayflower's Larry Glazer

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Investors are missing out on valuable parts of the stock market, says Mayflower's Larry Glazer (via CNBCFuturesNow)

"You still have a lot of positive trends in the United States," he said. "You've got low interest rates, you've got low energy prices, you've got low unemployment. You've got a really favorable backdrop leading into the presidential election. You've got the potential for global stimulus, whether it's China or Europe or the United States.

It may sound counterintuitive given the uncertainty around U.S. monetary policy, political tension in the Middle East and Brexit, but, to Glazer, these investments represent missed opportunities that will actually help investors mitigate some of the risks brewing in a stock market pushed to its extremes.

"There's no doubt this is a long expansion. We're long in the tooth, and that's why we think a rotation is warranted here away from some of these really high-valuation names. That is where the risk in the market is today," he said. All in all, Glazer doesn't want investors to hold back from investing in these forgotten groups just because they're worried.

"Of course there are concerns here," he said. "But you know what? We need to move past portfolio labeling and portfolio shaming. You don't have to own the S&P 500 and be shamed out of it. It's not about growth versus value, it's about valuation and being flexible in your mandate, something that's been totally out of favor the last couple of years but is going to start to come back into favor second half of this year.

 

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