Cheap Blue Chip Stocks with 'Rapid Earnings Growth'
Stocks slipped Thursday, after an unexpected jump in jobless claims rattled the market. Where should investors look to put their money? Keith Goddard, portfolio manager at President Capital Advisors, and Craig Hemke, founder of BuyAPension.com, shared their insights.
“The stock market’s come a long way, but there are still reasons why you want to hedge yourself against things that could go wrong over the next 6 to 12 months,” Goddard told CNBC.
“Longer-term, you’ve got some valuation and Greece risks, but stocks will do better than bonds in 2010, so we encourage investors to stay in the game.”
Look to blue chips where you can still find "inexpensive opportunities and high dividend yields," said Goddard. He also recommended companies with “rapid earnings growth.”
“That’s mobile Internet,” he said. “Companies tied to the build-out of the mobile Internet have a long roadmap where they can produce above-average earnings.”
He particularly likes Apple and Broadcom .
In the meantime, Hemke expects “a lot of risk” as the market reaches the final stage of the rally from last year.
He said investors should look into gold and precious metals.
“You’re seeing gold continuing to rally as it’s becoming a global currency that cannot be manipulated by central banks,” he explained.
More Market Views:
- Byron Wien: Oil at $100, Gold at $1,500 by Year-End
- Bonds Are 'Not a Good Place' to Invest: Leon Cooperman
- Apple Is Still a Good Buy: Senior Analyst
CNBC Data Pages:
CNBC's Companies in the News:
- Citi Adviser Rubin: I Didn't Know About Subprime Woes
Goddard and his family members own AAPL, GOOG, CSCO, BRCM and SY via owning shares of the CIAOX fund.
No immediate information was available for Hemke or his firm.