Where should you put your money in this market? Some of the pros interviewed on CNBC Tuesday like mega caps, regional banks and--yes--garbage.
Mega-Cap Growth Stocks
“The group has had a pretty miserable decade, in terms of the stock prices. The large caps have underperformed small caps, growth has underperformed value for 2000 to 2006 – 2007 was the first year they did better. We think this is going to be a multi-year trend, so you’re in the first or second inning of a what should be the next five or six years of this group doing better.”
David Katz, Matrix Asset Advisors Chief Investment Officer
Katz recommends: Cisco , Dell , Microsoft , Wal-Mart and AIG
"For investors that do really need a regional bank, we recommend US Bancorp...Most importantly, they don't have the exposure to the construction and the commercial real estate lending, and they've managed their loan-loss reserves very effectively over the last couple of years."
Gerard Cassidy, RBC Capital Markets Regional Bank Analyst
“They’ve been beaten up, but when you get down to it they’re a very recession-resistant space. A good 80 to 85 percent of their business is simple pickup – residential collection, commercial collection – and in a slowing economy, that doesn’t really go away.”
Brian Butler, FBR Capital Markets Analyst
Butler recommends: Waste Management , Allied Waste , Waste Connections and Waste Services