To give investors an edge on a day when the Dow seems to be maintaining its footing, CNBC asked the experts for their best trades now.
"Several industries have been faced with rising raw material costs, because of the over 100 percent increase in oil over the last year...I think it's a constructive time to ask, 'What industries are going to benefit if that becomes a tailwind instead of a headwind?' The diversified chemical industry would certainly qualify."
- Jay Bowen, Bowen, Hanes & Co. President
Bowen likes: DuPont, BASF and Walgreen
Banking on Financials
“When you step back, a company like Goldman Sachs …a company like JPMorgan , on the bank side, have really outperformed their peers…I think those are the companies that have the balance sheet strength to be really taking advantage of this environment, and setting themselves up to be the better performers going forward.”
- Jeffrey Harte, Sandler O'Neill
Beverage Stocks Picks
“Right now we still think some of the bigger, multinational names that are still putting up teens earnings growth – a Colgate , a Pepsi , a Coke – the valuations again are at 15 to 20 year lows right now, solid dividend yields, good visibility, again volatility surrounding some emerging markets, but at these prices we think it’s more than priced in.”
- John Faucher, JP Morgan Senior U.S. Beverage Analyst