Rebalance Your Portfolio With These Stocks: Pros

Investors tend to use the first week of the year to rebalance their portfolios from last year’s winners, said Jerry Castellini, president and chief investment officer of CastleArk Management, and Wayne Kaufman, chief market analyst at John Thomas Financial.

“Don’t be dissuaded by some of the weakness in techs or energy—those are areas you want to stay focused on,” Castellini told CNBC.

Within the energy sector, he likes Halliburton .

In addition, Castellini said investors should also look into the big banks:

“Don’t be surprised if Citigroup* moves substantially over the next 6 to 9 months,” he suggested.

Kaufman also shared his picks:

TRW Automotive—“They’ve beaten earnings estimates by 90 percent the last four quarters,” he said of the firm.

Eastman Chemical —“They are a diversified chemical company, and their biggest area is in consumer packaging such as chemicals that are used for plastics and bottles,” said Kaufman. “And over in China and India, water is a huge issue because their water supply stinks.”

Market Vectors Agribusiness

* See: Citi Shares Hit $5. Is $10 Next?

Scorecard—What They Said:

  • Castellini's Previous Appearance on CNBC (Dec. 3, 2010)
  • Kaufman's Previous Appearance on CNBC (Nov. 26, 2010)

More Investment Advice—Read and Decide:

CNBC Slideshows:

CNBC Data Pages:



Kaufman, his family and firm do not own shares of TRW, EMN or MOO.

Castellini and his firm own shares of C, HAL and QCOM.