The recession is likely to continue throughout the year, but valuations for stocks are looking attractive right now, said Jack Liebau, president and portfolio manager at Liebau Asset Management.
“There are some encouraging signs,” Liebau told CNBC. “I don’t think we’re going to have a sharp ‘V-shaped’ recovery, but inventories are very lean and that bodes very well for some industrial machinery companies.”
Libau said historically, stocks anticipate economic recoveries by 6 to 9 months. He said if the economy starts recovering from the spring of 2010, then that would indicate that the stocks would bottom at the middle of this year, if they haven’t done so already.
Liebau’s Recommendations:
Emerson Electric
Coca-Cola
Kellogg
Johnson & Johnson
Medtronic
Proctor & Gamble
Disclosure:
Liebau owns shares of Emerson Electric, Coca-Cola and Kellogg.
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