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Play Now - Because Markets Look 'Very Tough' in 2010

How can investors prepare their portfolios for the long term? Jon Fisher, portfolio manager at Fifth Third Asset Management, and Joseph Keating, CIO of private asset management at RBC Bank, shared their strategies.

“I think we go higher but we need to see earnings come through,” Keating told CNBC. “We’re looking for a slow growth economy—a very gradual pick up in economic activity and so I think we move higher, but we may have to be a little patient.”

Keating told investors to put money into high-quality brand name companies. (Read ahead for his stock recommendations.)

“We’re dividend investors and there are unique opportunities in the market right now to buy some incredible high quality companies that have higher than usual dividends,” Keating said.

In the meantime, Fisher told investors to reap the gains for the rest of the year, but to be cautious from 2010 on.

“The market is up for the most part the rest of the year,” said Fisher. “You have to take advantage of those gains because when you turn the calendar to 2010 the reality is going to hit investors that the economy is not going to get that much better…2010 will be a disappointment to people and the market is going to be very tough when you look out to 2010 until 2012.”

To capture gains for the rest of the year, Fisher recommended looking at sectors that have been performing well since the spring.

Keating Likes:

Proctor-Gamble

PepsiCo

Colgate Palmolive

AT&T

Verizon

Fisher Likes:

Tech

Energy

Materials

Consumer Discretionary

Fisher Dislikes:

Financials—"You don’t need to nor do you want to be invested in the financial sector," said Fisher. "There are some good names such as BlackRock and Goldman Sachs , but from a broad investment portfolio, I wouldn’t spend a lot of time looking for financial stocks to have in your portfolio."

Disclosures:

No immediate information was available for Fisher or Keating.

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