Stocks continued to slide on Friday, after logging their worst two-day decline since June. Where should investors be looking? Mario Gabelli, founder, chairman and chief investment officer at Gamco Investors, shared his stock picks.
National Fuel & Gas—“First we need to have energy independence, [the U.S. is] tired of depending on the Middle East, as a country,” Gabelli told CNBC.
“And one of the areas that we’re intrigued about is natural gas. It’s allocated to heating homes and [this firm] has 727,000 customers that take natural gas from them.”
Federal-Mogul—“The U.S. auto industry will enjoy 3 to 4 years of rising production,” he said. “Over the next 2 to 3 years, demand will rise, production will rise faster and companies that sell parts are going to get stronger, because they’re gaining market share; because a lot of their rival companies are going out of business.”
Gabelli added that firms such as Tenneco, Superior Industries International and Strattec Security will also do well.
“Jobs creation is priority number one [for Pres. Obama], and the auto industry benefits from that because you have some stability in that business and it’s also a global market place,” he said.
“A company that sells parts globally will do well.”
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Gamco owns shares of NFG and FDML.