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Stock Picks: Cigarettes & Cheap Food

Where are the market leaders now? Eugene Peroni of Advisors Asset Management and Peter Andersen of Congress Asset Management gave CNBC their insights -- and a few favorite stocks.

Peroni sees "no fresh new leadership" in terms of sectors.

"Very near-term, health care might be a little bit overbought, but on weakness it still represents a good longer-term buy," he said. He cautions that "we're not out of the bear market just yet," calling for one more low in financials -- then smooth sailing after that, for the remainder of the year.

Andersen said his firm is playing it safe and remains "somewhat defensive."

Recommendations:

Andersen believes there is still "some wind left in the sails" of consumer staples.

Kraft Foods and Philip Morris International (spun off from Altra earlier this year) "still have a lot of good features that still have some staying power," he declared. Another food stock he favors as an inflation play: Ralcorp Holdings , which provides lower-priced store brands as alternatives to national "name brands."

Peroni likes infrastructure plays, particularly water stocks and defense contractors.

(Click for Water Stock Picks)

Disclosures:

Disclosure information was not avaliable for Peroni, Andersen or for their companies.

Disclaimer

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