The Dow pared losses Wednesday after falling below the 10,000 mark. How should investors prepare their portfolios? Michael Church, president of Addison Capital, and Erik Ristuben, chief investment officer at Russell Investments, shared their insights. (Scroll down for their stock picks.)
“It looks like a very good time to be going bargain hunting in the stock market,” Ristuben told CNBC. “We're seeing maybe a little bit more of a modest recovery than we thought, but we're still in positive territory.”
Ristuben said once the market becomes comfortable with the fact that it won't enter into a double-dip scenario, stock prices will start to move higher. He recommended the financial services and consumer discretionary sectors.
In the meantime, Church remains cautious.
“I’d stick to high-quality dividend payers,” he recommended. “I’m not convinced that this is an expanding recovery.”
Church said there is the potential for a bear market and said the main economic problem is income growth.
“If we can drive [income growth], housing could stabilize, stocks could rise as consumption could pick up," he said.
Scorecard—What They Said:
- Church's Previous Appearance on CNBC (Aug. 11, 2010)
- Ristuben's Previous Appearance on CNBC (Jul. 8, 2010)
More Investment Opinion—Read and Decide:
- How to Play the Dividend Stocks: Art Hogan
- Best Investment Now—Stocks, Gold or Treasurys?
- 4 Winning Dividend Stock Plays: CIO
CNBC Data Pages:
No immediate information was available for Church or Ristuben.