Downgrades in the financial sector dragged stocks lower today, causing a three-digit drop in the Dow. To help investors protect their portfolios, CNBC enlisted the help of market experts.
Gold Is Still Golden
“Gold I think still offers good value right now, given the credit situation has morphed into one problem after another. And, as you pointed out, the safe haven attributes of bullion really shine in situations like this. Take into account also that the dollar has been weak and we’re facing an uncertain economic and financial future and that makes bullion and particularly gold very attractive.”
- Jim Steel, HSBC chief commodities analyst
Powering Up Your Portfolio
“We’ve been in stocks like Peabody Energy, Shaw Group, Joy Global for about the last two years, and we believe there is a secular theme here in terms of the need to build out power generating capacity around the globe. That’s going to be with us for quite a few years to come.”
- Matthew Kaufler, Touchstone Value Opportunities portfolio manager
Kaufler recommends: Peabody Energy , Shaw Group , Joy Global , Kraft and H.J. Heinz
Stocks at a Bargain
“If you look at the market now -- it’s been in a real funk for five, six months -- you can probably find some names that are in pretty good shape here. I kind of like Apple, down 80 points from its all-time high and business isn’t nearly that bad…I would say stay committed to a company like Deere long-term, you just don’t have a lot of alternatives in the ag space, and if you look at that secular outlook, that’s a five to ten year play, and then finally you have to have exposure to energy…look at a company like XTO.”
- Jerry Castellini, CastleArk Management President & CIO
Castellini recommends: Apple , Deere and XTO Energy .
Weighing in on Fad Stocks
[On Crocs] “Fundamentally this stock is very good. Their earnings are up 147 percent year-over-year, but the stock is down 65 percent. The stock had a high of 75, now you’re at 26…and for every dollar this company brings in, they keep 20 cents on the bottom line.”
- Brent Wilsey, Wilsey Asset Management President
Wilsey recommends: Crocs and Garmin.
Investing Ahead of the Market Bottom
"Nearing the end is when we get the first quarter earnings reports from most of the major financials, we get the last of the major write-downs, we actually have a couple of the major financials...that say, 'We overstepped it; it wasn't $26 billion, it was $25 billion,' that's when they ring the bell at the bottom. I think that happens sometime during the second quarter of this year."
- Art Hogan, Jefferies Managing Director
Hogan recommends: Taser International and Tupperware.