Small-Cap Stocks: Your Best Rebound Bet

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Want to position your portfolio for the recovery? Then fly in the face of the crowd calling for big-cap equities.

So says William Greiner, chief investment officer of UMB Asset Management. He told CNBC he believes the U.S. is already in a recession -- and says the best thing to do is buy small-cap stocks.

"When you look back over the last 10 recessionary environments, what tends to lead back on the upside is small-cap equities," Greiner said.

  • Learn more: Watch the entire interview (2 mins, 45 secs)

The CIO goes against the tide of those recommending financial giants like JPMorgan and Bank of New York . "Taken one by one," there are better buys to be had in local/regional banks, he says.

Recommendations:

Commenting on an earlier CNBC interview with First Niagara Bank CEO John Koelmel, Greiner says that that consumer-banking company is one worth considering -- though he cautions that "quality is always the key."

Small-cap banks that compete with First Niagara include KeyCorp and M&T Bank .

Disclosures:

Disclosure information for Greiner was not available.

Disclaimer