Even in a down market, there are stocks that buck the trend.
McDonald’s , for instance, is posting strong same-store sales gains in October just as Starbucks saw an eight percent decline.
As cash-strapped consumers trade down on coffee, food and clothes, investors should follow the money, says Howard Davidowitz, Davidowitz & Associates chairman.
“There are winners; the problem is that they are few and far between,” he says.
Davidowitz recommends Wal-Mart , CVS-Caremark , Family Dollarand Dollar Tree .
Still, it's worth noting that McDonald’s, Dollar Tree and Dollar General are already up between 19 and 31 percent over the last year.
Jeff Lehman, BKD Wealth Advisors, says it’s time to look for stocks that are cheap and offer value, such as Caterpillar and pharmaceuticals.
“We feel that there’s a lot of value in the healthcare area, in regard to ... the low valuations [and] dividends available on the large cap pharmaceutical stocks,” he said.
His favorites include Pfizer , Labcorp and Abbott Laboratories .
"At this point in the cycle, you really want to start thinking about what gets better, not what stays okay," says Gerald Jordan, of Jordan Opportunity Fund.
He likes energy and utilities like Peabody Energyand Diamond Offshore Drilling .