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Sector Plays for This Wild Market

CNBC.com
Monday, 24 Nov 2008 | 11:35 AM ET

The U.S. government's plan to inject $20 billion into Citigroup failed to fully reassure analysts about financials. So what is safe to invest in now?

Tim Harris at JPMorgan Asset Management and Khiem Do at Baring Asset Management offered their sector strategies to CNBC.

Harris recommends utility stocks, consumer staples and pharmaceuticals for this market environment.

Do disagreed on staples and utilities, saying they're still priced too high.

Mixed Response for US Govt Citi Bailout
The US government's rescue proposal for Citigroup failed to assure Tim Harris from JP Morgan Asset Management that the worst is over in the financial sector. Khiem Do from Baring Asset Management considers why Asian markets received the Citi news so poorly.

Instead, he prefers tech and consumer discretionary stocks — despite the weak consumer forecast — for their very low pricing. He also praises energy and commodities stocks for pricing advantages.

And Do takes his strategy a step further, predicting a "reflation" trade early next year that will far outpace defensive plays.

Disclosures:

Disclosure information was not available for harris, Do or their respective companies.

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Sector Stock Grab Bag:

Do's Sectors

- Oracle
- Alcoa
- Chevron

Harris' Sectors

- PG&E
- Procter & Gamble
- Pfizer

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Disclaimer

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AA
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CVX
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ORCL
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PCG
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PFE
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PG
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