According to an article in the WSJ, there are money managers out there who plan to sit out the fourth quarter. Already posting double digit gains, these PMs believe they’re better off in cash than trying to navigate the election and the"fiscal cliff", that is the confluence of tax hikes and spending cuts that could go into effect as soon as January 2013.
Of course, there are countless other investors who are underperforming their benchmarks or just plain unhappy with their returns. If that’s you, don’t panic. The Fast pros say there’s still time to play catch up.
Tim Seymour, founder of EmergingMoney.com , suggests putting money to work in emerging markets. “On a valuation basis, the space is interesting,” he says. “Going into Q4 I’m hearing that global hedge funds are going into emerging.”
Guy Adami, managing director of stockMONSTER.com. has an eye on defense sector stocks. “I think with all the geo-political unrest out there, defense stocks could be extremely interesting. They haven't performed due to potential budget cuts, but if something horrible happens, there’s no way we’re looking at deep cuts.”
Joe Terranova, chief market strategist for Virtus, thinks it’s a mistake to think laggards will become leaders. “Instead, I’d look at what’s working," he says. "That's consumer discretionary, retail and financials ,” he says. “I would not put money to work in energy or global industrials hoping they do better.”
Finerman, president of Metropolitan Capital , takes a different approach. “I’m a value investor,” she reminds. “If I like a stock then I like a stock. That doesn’t change from one day to the next unless something material happens. I plan to buy puts for protection – and stay with my longs.”
Posted by CNBC's Lee Brodie
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