CNBC Stock Blog
- Avis on the Road to Strong Growth: Analyst
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- Bulls Check In to Community Health
- Bank of America’s Worst-Case Scenario Gets More Real
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- So Now You Can’t Give Microsoft Away?
ABOUT THE CNBC STOCK BLOG
RSS FEED
CNBC EXPLAINS
Surging Crude Means Picking Shrewd
Text Size 
Big jumps for the unemployment rate and the oil prices on the same morning. Coincidence? Not likely, according to Christopher Zook.
"Crude oil, there's a tremendous imbalance right now in supply and demand, as well as the fact that you've got institutional buyers of the commodities trying to hedge out their portfolios against inflationary risk," the chairman and chief investment officer of CAZ Investments told CNBC. "The reality is, it's stagflation, it's coming, and we saw it this morning."
Recommendations:
So where in the world should a stock-market investment put his money?
"The best idea right now would be Applied Materials [AMAT
Loading...
()
]," he said. "We believe there's a tremendous growth opportunity there in the solar business, as well as the economy begins to recover in 2009 and 2010, they're going to get strength in their core businesses as well."
Zook also likes Procter & Gamble [PG
Loading...
()
] and Genentech [DNA
Loading...
()
].
"Procter & Gamble we like because of the defensive nature and the consistent performance of that company in an uncertain environment," he said. "We also like Genentech right now because of the new indications that they're getting for their core drugs; we believe that the valuation is very reasonable for the amount of growth that you're getting in cash flow for that company."
Disclosures:
Disclosure information for Christopher Zook was not immediately available.
Data is a real-time snapshot *Data is delayed at least 15 minutes
