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What the 'Bear in the Bull Mask' is Buying

Barry James calls himself "a bear with a bull mask on." The president of James Advantage Funds believes the market has bottomed, and the time is right for investors to get back into the stock market. He also thinks the rally will continue, despite the last couple of days of setbacks.

"In late February and early March, what we saw was a major capitulation, a waterfall decline, 20 percent in less than 20 days," he recalled. "I looked at waterfall declines going back to the 50s, and when they hit their low, and you have capitulation, you typically had a 45 percent rally, and it lasted for months. Not days, or weeks, but months."

James admits there's likely to be "some consolidation along the way."

Recommendations:

"You have to be select in what you buy, but what the Fed has said about the dollar and the devaluation of the dollar is going to be good for exports, so I think the industrials will be able to take advantage of that," he said.

He's even ready to buy cyclicals.

"I prefer things that are recession-resistant when I look at the cyclical area," he said. "Big Lots would fit more in my camp."

He also likes AmTrust Financial Services and FMC.

Disclosures:

Disclosure information for Barry James was not immediately available.

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