CNBC Stock Blog

5-Star Manager's 5 Stocks for Changing Markets

Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, said he is "cautiously" bullish on the markets. He offered investors advice to protect themselves in different economic environments.

Portfolio Manager: Diversification Is Key

“We’re in a very interesting time where we have a lot of uncertainty,” Cuggino told CNBC.

“So we’re positioned in multiple environments.”

Cuggino said if there is an inflation risk or if the dollar continues to decline, investors should look into precious metals like gold and silver, and if economies around the world grow, the reflation trade plays out with commodities, real estate and hard industrials. (Click forGold, Silver, Platinum Prices Now)

And should markets “bounce around the bottom,” form an L-shaped recovery or if there is no recovery, Cuggino told investors to look into high-grade corporates, treasurys and bonds.

“The weaker dollar policy is going to be in play for a while, so I think you’re going to see gold and commodities and precious metals trend up but it will be volatile, especially after the run we’ve had,” he said. “The U.S. stock market is fairvalued…For longer-term investor, there’s a lot of good values throughout, and a lot of liquidity that has yet to come back in so that bodes well for stocks going forward.”

Cuggino’s Stock Picks:

BHP Billiton  


State Street  

Air Products & Chemicals  

Peabody Energy  

Cuggino’s Sector Favorites:

Commodities—Gold, Silver, Copper


Financial Services

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Cuggino indirectly owns BHP, FDX, STT, APD, BTU, via owning shares of his PRPFX Fund.