Spring is finally here, and CNBC asked the experts how investors can best position their portfolios before the long weekend ahead.
Going for Banks & Brokerages
We would favor, I think, the banks and the diversified financials — the more diversified models, like a JPMorgan — but I would also be looking at well-capitalized brokers that have executed through this. Lehman is an example I think that folks [feared] going into the week, but that’s an example of a name that I think I would own.”
- Jeff Krumpelman, Fifth Third Asset Management Sr. Portfolio Manager
Playing Defense With Healthcare
Healthcare really hasn’t participated here as a defensive area yet. When you look at the earnings numbers, when you look at the product flow, when you look at topline growth, and you don’t have to reset the bar in terms of bringing earnings down, we think healthcare really makes sense. And in certain areas like device companies, service companies, [those] really are very defensive names here.
- Owen Fitzpatrick, Deutsche Bank Private Wealth Management
Fitzpatrick recommends: Stryker, Zimmer, Smith & Nephew, Medtronic, St. Jude Medical.
Betting on Big-Cap Pharma
I like the healthcare sector, in particular big-cap pharmas. I like the med techs and the hospital supply stocks. I think in the big cap area, stocks have underperformed. They’re down about 13 percent for the year, and they pay a nice dividend. If you look at the Treasury yields, you probably get three to five percent. You can get that in big-cap pharmas, plus you have a chance for price appreciation. They have a lot of cash on their balance sheets, and they’re safety plays.
- Todd Leone, Cowen & Co.