Stocks slipped again today after an early rally, and the word "recession" seems to be rolling off everyone's tongue.
CNBC asked market experts how investors can best weather this storm.
Drilling for Energy Opportunities
“You still have to like the upstream companies: the exploration production companies, the drilling companies and the service firms. Schlumberger , for example, we were talking about today, has a great long-term franchise. Your big problem, though, is increasingly their customers are state oil companies, and they don’t have as much pricing power there.”
Howard Simons, Bianco Research Strategist
Fast Money: Profiting From the Craze
Take a look at online brokers Charles Schwab, TD Ameritrade and Knight Capital , Fast Money's Pete Najarian said. These names are performing well but being sold anyway since anything retailed to financial services seems to be getting thrown out.
Guy Adami doesn't think “fallen angel” Goldman Sachs should be sold off in the same way that traders are selling Merrill Lynch, Bear Stearns and Morgan Stanley .
Investing in Sin Stocks
“Sin stocks, and that’s stocks of alcohol, tobacco and gaming companies, tend to do well in downturns. That’s because the revenue and profits aren’t tied to the economic cycles as much as other industries, and consumers aren’t going to stop smoking, drinking and gambling just because we might be in a recession.”
Anderson recommends: MGM Mirage , Altria , Diageo
Tom Anderson, Kiplinger’s Personal Finance
Strong Companies in a Weak Economy
“We are concentrated in healthcare, we also own technology, and we own some cheaper technology. We’re paying close attention, as we always do, but close attention to balance sheets in here. The stronger companies come through tough times like this better; they tend to gain market share, too.”
Farr recommends: Wells Fargo
Michael Farr, Farr, Miller & Washington President
Getting Defensive With the Dollar
“I think you need to look outside the stocks for some safe harbors, and I think one would be the U.S. dollar at this point. I think that this is a contrarian play. The dollar has been declining for a long, long time, it hit a 40-year low in November, so I think this is an area, it has very low correlation with stocks, it’s probably going to offer you some protection here in a real volatile stock market.”
Brett D'arcy, CBIZ Financial Solutions Director of Investments