CNBC asked the experts where they would invest in this market environment, and here's a sampling of their recommendations.
Riding Railroad Stocks
“We like Union Pacific for three main reasons. We think it’s got the best opportunity for pricing gains, as there’s about 25 percent of the legacy business left to reprice. We think it’s got the most operation gains left … We also think Union Pacific has the best opportunity for volume gains going forward.”
- Jason Seidl, Credit Suisse First Boston Analyst
“Canadian Pacific … and Norfolk Southern . We like those two stocks because they have a high exposure to the defensive freights … and we believe they’re currently trading at discounts relative to the group. Another company we like is Burlington Northern .
- Lee Klaskow, Longbow Research Senior Transportation Analyst
Banking on the Banks
“We still argue for a defensive posture in the [financials] group, so among the bigger banks, JPMorgan , among the regional banks, a US Bancorp or an M&T , some of the more defensive plays. And we also like … Bank of New York .”
- Jason Goldberg, Lehman Brothers Banking Analyst
The Case for Intel
“We like Intel here; we like it on the long side and think the PC market’s holding up well. We’re a little concerned about the other businesses they’re in, including the memory market, but core PCs seem to be strong.”
- Doug Freedman, American Technology Research