Fidelity Manager Prefers "Cheap Stocks"

Fidelity Investments' Mark Notkin said that high yield, junk debt has had its run, and now is the time to move into "cheap stocks."

“I don't see the value in the high-yield market,” Notkin said. “You are not being paid to take risk.”

Some of his picks have performed tremendously, since he began purchasing them. Teck Resources (NYSE: TCK) and TRW Automotive Holdings Corp. (NYSE: TRW) are two of his best performing names. “We love the auto sector,” said Notkin.

He did say that he is looking to add to his loan holdings, when interest rates begin to rise.

“When rates rise, which will happen eventually, bank debt will look attractive and will outperform high yield at some point,” Notkin said.