Stock Picker:  Think Large-Cap, Long-Term

Tuesday, 11 Nov 2008 | 10:38 AM ET

The faltering economy makes fixed-income investments look mighty tempting, but Jeff Layman of BKD Wealth Advisors is advising investors not to overlook badly-battered blue-chip stocks.

Market Pulse Check
Whether now is the time to buy or avoid equities, with Jeff Layman, BKD Wealth Advisors and Bob Andres, Portfolio Management Consultants

"It's tough to identify many near-term catalysts for stocks," he admitted. "Just as you see a bright ray of sunshine in the news, you come around the corner and there's another negative news story."

That aside, Layman sees some unmistakable long-term opportunities.

"If you look at many of the companies out there in the large-cap universe trading at single-digit multiples, offering yields of 4, 5, 6 percent and more, we think that it's a good opportunity in the intermediate- to long-term range to buy those stocks, take the income, take the dividend, and we think we'll see price improvement down the road," he told CNBC.


Layman's picks for long-term equity investments are heavy-equipment producer Caterpillar, drugmaker Pfizer, and switching and routing giant Cisco.


Disclosure information for Jeff Layman was not immediately available.


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