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Current DateTime: 04:20:19 01 Dec 2008
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Natalie Erlich, | 13 Aug 2008 | 04:21 PM ET
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As stocks slid following July's weak retail sales report, CNBC asked the experts where to invest now.

‘Thinking Small’ Caps

Brown Shoe [BWS  Loading...      ()   ] it’s interesting because it’s a classic value play. It’s a depressed multiple applied to a depressed earnings profile. Right now the stock is so inexpensive it’s almost like a call option.”

- Lawrence Creatura, Clover Capital

Investing in High-Yield Bonds

“It sounds like it has all the things that people should be afraid of right now, but if you really look closely at Allison [Transmission], it makes automatic transmissions, it has a near monopoly on this market, and although it’s highly leveraged with that monopoly, it’s been throwing enough cash flow even early on here.”

- Greg Hopper, Julius Baer Global High Income Fund

Going Fast

“It's Fastenal [FAST  Loading...      ()   ] actually near an all-time high, but we still think it's a buy. It's a company that actually grows during recessions, an industrial supplies distributor that's sensitive to housing and to the conditions in manufacturing."

- Bill Bergman, Morningstar stock strategist

Bergman also likes: Lowe's [LOW  Loading...      ()   ].

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