Expert Advice: More Danger Likely in Financials

Investors should stay away from financial stocks and be cautious about commodity and material investments as well, according to one money manager.

"This credit unwinding has a lot further to go," Jack De Gan, chief investment officer of Boston-based Harbor Advisory told CNBC. He recalled Goldman CEO Lloyd Blankfein's observationthat the low point in financial securities won't be reached with the markdowns, but with the liquidations, which he thinks are still to come.

He made an exception for Berkshire Hathaway , his firm's largest holding, which is 25 percent higher than it was in August, when news of the credit crunch started to break.

De Gan is also reluctant to venture into larger industrials. "If credit does contract the way we think it will, the financials will have to contract their balance sheets, and that will slow the general economy," he said.

So where's an investor to go?

"I'd want to buy the technology stocks which are smaller, more 'nichey,' focused in an area where they can take market share and grow, even if the overall market is stagnant," De Gan said.

He suggested that investors who bought consumer products stocks like Clorox several months ago stay with those stocks, even though they have become quite pricey.

"They're a safe haven," he said. "There are going to be very good buying opportunities, for instance in the financials, in the next six to 12 months, so I think the consumer staples are a safe place to hide. They are not credit sensitive. Their business is very durable. You can stay there and watch for other opportunities."

He also cautioned against going into basic material or commodity investments, noting that they are showing signs of overinvestment similar to the housing and technology bubbles of years past.