In an economic downturn, it’s time to take a long-term perspective, said Michael Cuggino, Permanent Portfolio Funds president.
“The economic slowdown we have right now, the economic crises, are all symptoms of a larger disease and that’s confidence,” Cuggino told CNBC's Erin Burnett. “When confidence comes back, all the aches and pains associated with that issue in the marketplace and transacting business will go away rather quickly.”
Cuggino points to China and copper as two solid, long-term investments.
“That part of the world is growing and copper is hard to produce,” he said. “Nations are going to need it for a long time going forward.”
Cuggino is bullish on Freeport McMoRanCopper & Gold management, for instance.
“They know how to manage downturns as well as upturns,” he said. “So we think they’re going to do the right things going forward, to steer the business through the tricky climate that we have right now and come out much stronger.”
He also likes XTO Energy.
More from CNBC.com:
Freeport McMoRan CEO discusses earnings results.