What's Looking Up In a Down Market?

Andrew Fisher

Where's an investor to turn, surrounded by the uncertainty of dismal economic numbers and weak corporate earnings and projections?

David Katz, chief investment officer of Matrix Asset Advisors, is modestly upbeat about financials and retailers.

"We don't know that you can call a bottom in financials until they're up about 25 or 30 percent," Katz said. "We would be buying some financials here."

He sees retailers as a good place for investors to be in the middle of a recession.

"Expect some short-term pain, but 12 months out, we think they're going to be a lot higher," he said.


Katz sees this quarter as a difficult one in which to make investment choices on the basis of earnings, but he's upbeat about several companies, although financials and retailers are not at the top of his list.

"Dell had a very good conference last week," Katz noted. "It almost assures that they're going to turn the business around within 12 months.  McGraw-Hill is a great long-term franchise, and we think [Wyeth is] a good business at a very inexpensive valuation."

Katz also likes Western Union.

  • Video: Watch the entire Katz interview (4 mins, 42 secs)


Katz and his family own Dell, McGraw-Hill, Western Union and Wyeth, and those companies are investment banking clients of his firm.