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Picking Stocks Against the Tide

Andrew Fisher
Wednesday, 27 Aug 2008 | 11:36 AM ET

David Sowerby says investors make the most money when they run against the herd. The chief market analyst of Loomis Sayles says people are gloomy right now -- and that's his buy signal.

"There's some opportunities that are wonderful off these July 15 lows in the market," he told CNBC. "We've seen that those subprime-infected stocks that did not rally off the 'fake' March 10 lows, they have started to move up."

Recommendations:

Who's he talking about?

"Names like Pulte (Homes), which I think is the highest-quality homebuilder; Gap, on the retail side, which had a 4 percent margin expansion in their most recent quarter; Monroe Muffler, not a large-cap name, but I think there's wonderful opportunities in small- and mid-cap names, good, consitent cash flow generator," he said.

Market Pulse Check
Higher-quality names that happened to catch the subprime cold, with Rod Smyth, Riverfront Investment Group and David Sowerby, Loomis Sayles & Co.

Disclosures:

Disclosure information for David Sowerby was not immediately available.

Disclaimer

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