This is a great time for investors to hunt for good value plays, said Bill Smead, chief executive and chief investment officer of Smead Capital Management, and Harvey Neiman, portfolio manager of Neiman Large Cap Value Fund.
“It’s the industry that’s important and in the financial area, some of the insurers are good buys,” Neiman told CNBC.
“We also feel that some of the energyfirms have some good values.”
In the meantime, Smead said he likes to avoid the popular areas while buying up the unpopular sectors. (Scroll down to see his full list of picks.)
“The pharmaceutical stocks are at the hugest extreme in the last 30 years and we think the emerging markets are going to begin to submerge in 2011 as they tighten credit in China," he explained.
"And therefore, we want to avoid cyclical, energy, basic material [sectors]—exactly the stuff people have been in love with for the last 4 to 5 years,” Smead added.
Big Pharma & Biotech—Merck , Abbott , Pfizer
Domestic Financials—Wells Fargo , Bank of New York
Staple Consumer Discretionary—Cabela’s , Nordstrom
Scorecard—What He Said:
- Smead's Previous Appearance on CNBC (Dec. 2, 2010)
More Market Advice—Read and Decide:
- How to Profit From the Jobs Rebound: Stock Pickers
- 6 High-Quality High-Yield Stock Picks: Strategists
- 5 Large-Caps That Will Make You 'Lots of Money': Pro
CNBC Data Pages:
Neiman owns shares of ACE, APA, CB and MUR in the Neiman Large Cap Value Fund.
No immediate information was available for Smead or his firm.