He also recommends picking companies that have low exposure to Europe. “One way to do that is to go with small caps, which have mostly domestic exposure. Or if you want to go large cap, try U.S.-focused companies such as Coach and Disney . They have some European exposure, but it’s not overwhelming.”
One problem for investors this year is that money poured into dividend-paying stocks and other defensive plays last year as the stock market sputtered.
Scott Richter, a portfolio manager with Fifth Third Asset Management, sees some upside if investors are selective.
“There’s still some value in healthcare,” he says. “The energy sector is still cheap.”
In particular he likes California biotech company Amgen , oil field services company Baker Hughesand oil giant Royal Dutch Shell .
While utility stocks have had a big run up, Richter says electricity company Exelon is an exception, making it a good bet.
James Swanson, chief market strategist with Boston-based mutual fund MFS, says investing in dividend-paying stocks is a no-brainer.
He notes that dividends represent 40 percent of investor returns in the long run and are much less volatile than corporate earnings.
Contrary to some other market strategists, he also likes big technology companies, such as Intel.Page 3 of 5 | Prev Page | Next Page