Investing Ideas From 5-Star Fund Managers

What's looking up in this down market? Peter Klein, senior portfolio manager at Fifth Third Asset Management, and Frank Holmes, CEO and chief investment officer of U.S. Global Investors, are two five-star fund managers who still find promising purchases.

Klein says an investor must keep three things in mind: whether the goal is growth or income, whether the time frame is near- or long-term, and whether one's risk appetite is high, moderate, or low.

With that in mind, Klein likes Mattel, whose price has been driven down by a highly-publicized and ongoing series of toy recalls.

"Their international sales are very buoyant," says Klein. "We feel this is an excellent place to be at a very attractive price."

Gold may be at the highest price in decades, but Holmes finds its appeal elementary.

"There's a very strong relationship of oil to gold," he explains. "I think we're due for a correction, but I'd get long gold in any type of a correction, because the demand for oil is going to grow and grow."