Buy ‘Still Cheap’ US Stocks, Ignore Cyprus: Pro

By: James Knight, Special to CNBC.com

U.S. stocks offer a great buying opportunity and will be able to withstand the current market unrest resulting from problematic bailout talks in Cyprus, Philadelphia Trust Co. CEO Michael Crofton told CNBC on Tuesday.

"The U.S. market is still cheap and a great place to be invested," he said, dismissing any notion that the crisis in Cyprus would weigh on international markets outside of Europe. His confidence is based on the belief that there is still enough money "on the sidelines" waiting to be invested to ensure an inevitable market correction is both minor and short-lived.

"Cyprus is somewhat problematic from the point of view of European sovereignty but that's a much bigger issue. I don't think this market's going to be very badly affected by it. I think we're going to power through it; the (Federal Reserve's) driving the boat, it's a big boat and I think the Fed has engineered a turnaround in the U.S. economy," Crofton said.

"Now it needs to catch on, gain some momentum, pick up the ball from the Fed and move forward on its own," he said.

(Read More: 'You Have to Be Bullish,' on US Stocks: Whitney)

US Market Still Cheap: Pro

Tuesday, 19 Mar 2013 | 5:30 AM ET

Michael Crofton, president and CEO of the Philadelphia Trust Company, says Cyprus will not be problematic for U.S. trade.

He recommended domestic energy stocks, regional banks, and technology stocks.

"I love domestic energy; natural gas, more stable shale, anything that's coming out the ground in the U.S. is going to be in a dominant position in the next economic move. It's a great place to begin to invest," Crofton said.

He pinpoints shale plays as doing extremely well while being available at a reasonable price, and particularly Bakken shale as undervalued. The move towards shale signifies an underlying trend as the U.S. aims for much greater energy independence. Shale plays a significant role in this process due to the vast quantities of gas it harbors beneath its formations.

(Read More: Power Shift: Energy Boom Dawning in America)

The Bakken formation in North Dakota, as well as Barnett shale in Texas and other formations in Arkansas and the Gulf Coast, epitomize this movement as they go through a significant boom. According to a Citigroup report, shale gas increased its market share from 6.7 percent to a staggering 40 percent of total U.S. production in the decade to 2012.

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