Market May Be in Limbo, But 'Play The Fringe'
Right now, John Dorfman, portfolio manager of the Dorfman Value Fund, said he’d rather be buying stocks now, but some of his clients insist on selling.
“I think it’s a good time to be buying some stocks," said Dorfman. "I’m buying some pharmaceuticals, and some metals, and some energy, which have been very beaten up. Those are some of my favorite sectors and also some selected financials and industrials.”
“I just feel like when all the news is bad, it is a terrible time to be out of the stock market because that’s when rallies usually begin," Dorfman said. "And the first third of rallies is usually the most vigorous stage."
Mark Pado, US market strategist with Cantor Fitzgerald, said that the credit crisis will take months to work through.
"I’d be cautious to start consumer staples," Pado said. "Then, maybe if you want play around the fringes, I think this selloff in technology might get a surprise, especially if gasoline goes down to $2.50."
To hear more on their viewpoints, watch the video.
Disclosure information on Dorfman's and Pado's stock holdings were not available.