Prep Your Portfolio For Next Week: Strategists

Should you hold financials for the week ahead? Alan Valdes, vice president of DME Securities, and Peter Andersen, portfolio manager at Congress Asset Management, shared their best plays.

“I’m a little leery of the financials,” Valdes told CNBC.

Valdes pointed out that there have already been several bank failures this year and another 700 on the “problem list.”

“Yesterday’s foreclosure numbers were still weak and 50 percent of those bank assets are in foreclosures,” he added.

Valdes said although Goldman Sachs is a “great stock and a great company,” he would stay away from buying it.

In the meantime, Andersen said investors can find alternatives to financials by investing in companies such as Portfolio Recovery Associates .

“As the economy improves, we think the stock is going to move up because consumers get stronger and they tend to pay back debts in a stronger fashion,” he said.

  • Watch Andersen's Previous Appearance on CNBC (Apr. 13, 2010)
  • Watch Valdes' Previous Appearance on CNBC (May 12, 2010)

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Bank of America


Morgan Stanley


Andersen owns shares of PRAA.

Valdes does not own shares of GS.