Tech Stocks: Buy Two, Skip One

After the Fed rate cut and recession talk now reversing itself, where should you put your money?

Eugene Peroni, senior vice president and portfolio manager at Advisors Asset Management and David Stepherson, senior portfolio manager at Hardesty Capital Management, named the sectors and stocks to buy -- and avoid.

Peroni sees the market verging on a possible short-term bottom. He notes that health and energy declined, but may be edging back up. Stay with the sectors that were "most established last year: marquee names in tech and health care." He says the latter should be regarded as "more than just a defensive play."

Peroni likes energy and believes that oil "is headed to new records." He sees possibilities in construction and infrastructure plays like chemicals and industrial gas.

Stepherson differs on one point: "We don't like energy," as the global economy is slowing and "oil is too high." however, he agrees with peroni that there will be no recession and sees stronger markets in the second half of 2008.

He recommends tech stocks in "the right places" -- namely, business/enterprise, rather than consumer electronics. "Apple is too expensive," Stepherson says. But we do like Oracle and Microsoft."