The stocks that have gained the most since the Fed began lowering rates have been those that do the best in a growing economy. Retail stocks have posted three of the 10 largest gains in the S&P 500.
Kmart Corp surged 86 percent since the January easing, JC
Penney Co climbed 68 percent and Winn-Dixie Stores Inc advanced 55 percent. Xerox Corp topped the list with a 98 percent gain.
Meanwhile, technology stocks dominate the list of the largest decliners in the index during the period. Palm Inc lost 75 percent for the biggest decline, with Applied Micro Circuits Corp and Broadcom Corp close behind.
Vergin said he's been buying shares of Burlington Northern Santa Fe Corp, the second largest US railroad, because it will benefit from a growing economy and the stock is inexpensive compared to other railroads.
He's optimistic on the market overall.
"It's only been three or four months out," he said. "It takes time for the cuts to work through the economy and to see results."
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