Charles Norton, portfolio manager at ALPS/GNI Long-Short Fund, and Ronald Carson, of Carson Wealth Management Group, believe investors can make money by shorting stocks. They discussed their best plays.
“In the longer-term, the only way to survive this environment is to have some short positions and have some hedges,” Carson told CNBC.
Carson recently shorted Apple , Chipotle , Toll Brothers and Skechers stocks. He told investors to avoid consumer discretionary, housing, auto, airline and retail sectors.
However, he likes Bristol-Myers , ConAgra Foods , Kimberly-Clark and StoneMor Partners .
Meanwhile, Norton said he is shorting the smaller-cap, lower-quality names that are tied to the consumer such as Boyd Gaming and Moody’s .
“Broadly speaking, we believe that the U.S. consumer is pretty ill,” he said.
But on the long side, Norton likes large-caps within the foods and tobacco sectors that offer dividends.
Scorecard — What They Said:
- Carson's Previous Appearance on CNBC (May 24, 2010)
- Norton's Previous Appearance on CNBC (Apr. 24, 2010)
More from Stock Pickers — Read and Decide:
CNBC Data Pages:
No immediate information was available for Carson or Norton.