A correction is “clearly on its way,” but investors can still make money in this market environment, said Enzio von Pfeil, CEO of EconomicClock.com. He shared his market strategies.
“There are good reasons for that correction…because the economic time is not as good as people think, and that’s what’s going to weigh on the markets,” von Pfeil told CNBC.
However, von Pfeil said there are still some sectors that provide security for investors.
“You’re going to be best if you’re involved in things that don’t go up or down because people keep on needing it—like utilities, consumer staples, health care,or pharmaceuticals,” he suggested.
“But you don’t want to be in the cyclicals—other than, of course, if you have the bravery to short them—such as the shipping stocks.”
Von Pfeil said investors can invest in the cyclicals starting in 2011, once things get “blackest,” once the Fed has begun to hike interest rates and when people think it’s “the end.”
“That’s when, actually, the beginning has hit,” he said.
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Top Consumer Staple Firms:
Colgate-Palmolive
Wal-Mart Stores
Costco
General Mills
Proctor & Gamble
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Disclosures:
No immediate information was available for von Pfeil or his firm.
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