The CNBC Edge: Market Survival Guide
The Fed's emergency rate cut helped stem Tuesday's market selloff, but the Dow hit its lowest level in 15 months as investors remained worried about a U.S. recession.
With the markets still volatile, CNBC talks to the experts to help you keep your portfolio afloat.
Bet On Banks
"Two CEOs came out today. The BofA [Bank of America] CEO and the Wachovia CEO came out and said their dividends were secure. You know, talk is talk I guess and talk can be cheap. But, those are pretty strong statements. And those yields, at least in terms of Wachovia, are close to 8%. So, there are some decent bargains beginning to appear in the bank area."
William Gross, PIMCO CIO
Find Housing Bargains
“Right now this is the market that everybody’s been dreaming about. Cheap money, cheap prices… at the same time that never happens. So if you’re not getting into the market now, I don’t know, maybe you’re out to lunch somewhere.”
Barbara Corcoran, The Corcoran Group Chairman & Founder
“You can always buy houses and make money in any market. But, you just have to be pretty careful. You have to know where things are headed. And, if they’re going down, how far are they going down? And, just take that into consideration when you make your offers. There are a lot of bank foreclosures and everyday I get a letter from somebody who says they have millions billions of dollars worth of REOs from the banks that they want to dump. So far, we have not found anything that really makes a good deal yet. But, I’m very confident because I know it’s only a matter of a few months and we’re going to have so much to choose from and it’s going to be like a schmorgers board.”
Phyllis Rockower, Real Estate Investors Club of Los Angeles President & Founder
Tough It Out
“If you’re going to be an investor, you cannot be a market timer… Making the decision to move to the sidelines is the easy part, but getting back in is the difficult part… If you’re going to be an investor you need to be committed to doing your homework and looking at these mutual funds. And, we prefer actively managed mutual funds because they can add value over what the index can provide… You have to tough it out, but you have to understand what it takes to tough it out. And what it takes is to get involved with your money, understand who the managers are of these portfolios… And, most importantly, go back and look at how the managers have performed during tough times and how they’ve recovered.”
Carrie Coghill Kuntz, D.B. Root & Co. Co-founder & President
“There are some certain opportunities that exist in the market today. Averages long-term take time to work. But, the only way you’re going to get them is if you’re there in the beginning, middle and end.”
Joe Clark, Financial Enhancement Group Managing Director