The Dow rose on Wednesday and you could almost hear the collective sigh of relief on Wall Street; traders feared growing concerns about the health of the banking sector might trigger a big sell-off.
However, don’t get too excited, just yet. We’re not out of the woods. “The operative principle is to keep your head down and avoid the temptation of buying into extreme weakness,” says Oppenheimer chief market technician Carter Worth on CNBC’s “Closing Bell.”
That’s particularly true for commercial real estate. Some investors are thinking now might be the time to dip a toe into those waters after Lehman Brothers' CEO said "we do not envision large write-downs in the commercial real estate portfolio.
If you’re thinking about playing commercial real estate Worth says, “It seems like the single worst place to be. I think shopping centers and malls are next.” In other words they’re the next mortgage holders who could have trouble making their payments.
However, all is not lost. Worth likes select food stocks. “Some were able to pass along price increases or reduce the size of their packages when the cost of grains went up,” Although grain costs are lower, the package sizes and prices will remain the same.
“General Mills and Heinz are at 52-week highs.” Worth says. “I like Kraft and Campbell’s , he counsels, “because they look as if they’re going to catch up.”
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