GO
Loading...

What's an Investor to Do? Recession-Proof Stocks

Brooke Sopelsa,|Video Producer
Tuesday, 5 Feb 2008 | 3:35 PM ET

Investors are worried about a recession again. The ISM nonmanufacturing index showed that the services sector--which represents over three-quarters of the U.S. economy, actually shrank in January instead of growing weakly. The markets responded with another selloff.

To help investors weather the storm, CNBC asked the experts for some recession-proof stock picks.

Smart Money: Medical Device Makers
With talk of recession in the air, investors may want to get defensive, and investing in medical device makers is one way to do that. Jan Wald, of the Stanford Group, shares his investment strategy.

Medical Device Stocks: Healthy Buys

"It looks like it might be a good time to move into Boston Scientific or Johnson & Johnson , one of the two players in the market right now in the U.S., Medtronic down the road, Abbott down the road as well."

Jan Wald, Stanford Group Managing Director

Wald recommends: Boston Scientific , Johnson & Johnson , Medtronic and Abbott

Your Best Trades Now
Four star value picks, with Michael Chren, Allegiant Asset Management portfolio manager and CNBC's Melissa Francis

Value Stocks at a Bargain

"In Cablevision's case, with Verizon Fios, it's really about what the assets are worth, and the dynamics in place to capture full value here...We think what's going to happen here is when Jeff Bewkes at Time Warner splits up the company, Time Warner Cable gets spun out; they become an independent entity, and ultimately go after Cablevision or force [Cablevision's majority owners] to capture a higher value. We think it's probably worth $40 to $44 a share."

Michael Chren, Allegiant Asset Management Portfolio Manager

Chren recommends: Cablevision and Sara Lee

_______________________________________
Fight the downturn -- trade with CNBC's experts:

_______________________________________

Market Pulse Check
Insight on whether if there is still time to bet on big caps, with Mike Holland, Holland & Company chairman and CNBC's Erin Burnett

Giant Stocks for Tough Times

“The big guys, the giants, I’m thinking Berkshire Hathaway, Microsoft, GE, these are companies that are taking advantage of the troubles. The tough guys are going to win - Darwinian survivors.”

Michael Holland, Holland & Co. Chairman

Holland recommends: Berkshire Hathaway , Microsoft and General Electric

Markets Coast to Coast
Fresh market perspectives, with Bernard McSherry, Cuttone & Co.; David Magee, Magee Thomson Investment Partners and CNBC's Erin Burnett

Companies With Emergent Growth

"I would prefer to go with names that have more emergent growth, like Master Card, where you have trends you can play. The overall trend toward plastic, and away from cash, the emerging markets taking hold of that theme, the developing world. These are themes that can boost a company like Master Card to a 40 percent growth rate.”

David Magee, Magee Thomson Investment Partners

Magee recommends: Master Card and Monsanto
(Contd.)

_______________________________________

_______________________________________

Cramer's Nasty, Cramer's Nice
Jim Cramer's nasty and nice stock picks

The Case for Whirlpool

Whirlpool is amazing. The company never gave up. They’ve been pumping out Whirlpool Maytag. We haven’t’ seen any merger synergies until this quarter. The Maytag move was great.”

Jim Cramer, Mad Money Host

Cramer recommends: Whirlpool

Coal Comfort
Sky-high fuel costs may be help fuel your return on investments, with David Khani, FBR managing director/energy analyst and CNBC's Erin Burnett

Energizing Your Portfolio With Coal

"The [coal] export market into Asia and Europe is very, very strong, and it is in a multi-year uptrend. Supply is not keeping up with demand abroad."

David Khani, FBR Managing Director & Energy Analyst

Khani recommends: Arch Coal and Consol Energy

  Price   Change %Change
ABT
---
ACI
---
BSX
---
CNX
---
CVC
---
GE
---
JNJ
---
MA
---
MDT
---
MO
---
MSFT
---
WHR
---
MCD
---

Featured

Contact Stocks

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More