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CNBC Market Survival Guide: What to Do Now

Brooke Sopelsa
Tuesday, 22 Jan 2008 | 3:19 PM ET

The Fed makes an emergency rate cut. Stocks initially plunge, then recover but remain lower. Amid all the market turmoil, investors are confused, even frightened.

CNBC asked the pros what they would do in this kind of unsettled market. Here's what they had to say.

Stocking Up on Tech

Equity Managers React to Markets
How to play stocks amid today's selloff, with Jeff Krumpelman, of Fifth Third Asset Mgmt., and David Bianco, of UBS

“Intel I think that that is an example of things being overdone. If you listen to management’s comments in their recent quarterly report, they really don’t see a slowdown. And I think they also do watch CNBC and admitted that some of their conservative projections in the first quarter and for the year were based on providing cushion for softness or softening in the global economy. But, they don’t see signs of that right now. They’re very well positioned relative to AMD. All of their metrics are very good: inventories, average selling prices… And, the PC market still looks pretty strong.

Jeff Krumpelman, Fifth Third Asset Management Senior Portfolio Manager

"Emerging" Opportunities

The Smarter Play
A look at where investors should place their bets right now, with Harry Clark, Clark Capital Management Group; Vince Farrell, Scotsman Capital Management & CNBC's Sue Herera

"Emerging markets generally are enjoying stronger GDP growth than developed markets. Earnings per share growth is stronger. You’ve got transition within emerging markets of countries that such as the so called BRIC markets, Brazil [Brazilian Bovespa], Russia [RTS Moscow], India [Bombay Sensex] and China [Shanghai Composite], where the growth is more driven by domestic consumption than by export growth."

Durham Recommends: Russia [RTS Moscow]

Brad Durham, Emerging Portfolio Fund Research

Homebuilder Opportunities

The Home Front
A look at what the rate cut means for housing, with David Goldberg, UBS; CNBC's Diana Olick

"You can find selective buys in the builders now. There's a couple of companies that are well-positioned in terms of cash flow, in terms of the cash they've generated and the liquidity on their balance sheets. We're going to see a lot of pain through this downturn, especially with, we believe, some of the smaller private builders, that use shorter-duration financing. Actually, there's a couple of names, and I would point out Toll [Brothers] and Centex as two of them that are pretty well positioned to take advantage of some of those opportunities."

Goldberg Recommends: Toll Brothers and Centex

David Goldberg, UBS Analyst

Altria: An International Play

More Market Voices
Shedding light on the market low, with Kevin Ferry, Cronus Futures Management; Robert Pavlik, Oaktree Asset Management & CNBC's Erin Burnett

Altria is a big holding of mine, and I love the stock. I think it’s the international play that you want to continue to hold going forward.”

Pavlik recommends: Altria

Robert Pavlik, Oaktree Asset Management

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CNBC Special: Warren Buffett's Timeless Strategies

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Advice for the Individual Investor

Economic Outlook
Details on the weak outlook, with Arthur Cashin UBS Financial Services director, floor operations; CNBC's Charlie Gasparino & Rick Santelli

"They've got to understand why they invested. If it's for the long run, they ought to, frankly, stop listening to us jabber away, and go about their business. If they have a short-term time horizon, they didn't belong in there in the first place, and if they have some money earmarked for equities, do a dollar-cost-averaging system. Start getting in, my guess is, eight to 12 months from now, equities will be nicely higher than they will be at today's low at the opening."

Bob Doll, BlackRock Vice Chairman & Global CIO of Equities

Energizing Your Portfolio

Market Pulse Check
Insight for your portfolio to ride out this uncertain market, with Thomas Winmill, The Midas Funds; John Buckingham, Al Frank Asset Mgmt. and CNBC's Erin Burnett

“We do have a lot of energy stocks, and we’re certainly holding on to them. Oil is still very elevated relative to where it was a year ago or two or three years ago. So I think names like Exxon and Marathon Oil, a name I was going to talk about today, these are stocks that have come down considerably, and I think there is great opportunity there.”

Buckingham recommends: Exxon and Marathon Oil

John Buckingham, Al Frank Asset Management

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CNBC Special: Don't Panic -- You Have Choices

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The Case for Biotech Stocks

Live From the Trading Desk
Straight from the front lines at, with John O'Donoghue Cowen & Co., & CNBC's Scott Cohn

"Biotech stocks have actually exhibited more sense of maturity in the last few years. A lot of these things are flush with cash, they actually have the pipeline and the marketplace, not really beholden to the economic cycle the way a lot of other things are, whether it's retail, whether it's energy stocks, in a recessionary environment. What we've seen specifically with some of the bigger names is almost a flight to quality, and I think we may see this again in the next few days."

John O'Donohue, S. G. Cowen Head Trader

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