Ernie Cecilia, chief investment officer of Bryn Mawr Trust Co., says he believes stock prices will eventually have to be driven more by fundamentals than central bank stimulus, which has rocketed the market to new highs since the financial crisis.
That said, what is the firm buying and selling for client portfolios? Bryn Mawr Trust, whose main office is in Bryn Mawr and now oversees $7 billion in assets, prefers "old tech" companies such as Microsoft (MSFT), which boasts a new chief executive, Satya Nadella.
"We started buying Microsoft in January of last year," Cecilia said. The firm also likes Cummins (CMI), maker of diesel and natural gas engines and electric power-generation systems. With sales in North America and emerging markets, it trades at 16 times forward earnings.