Sunday, July 19, 2009

Experts point out where good buys might be

WASHINGTON — For the third quarter, market strategists said there are still many good buys. "The bargains are fewer than they were months ago, but the bargains exist," said John Coumarianos, a mutual-fund analyst for Morningstar.
Jeffrey Kleintop, market strategist for LPL Financial Services, said the industrials sector is one to consider because those companies will benefit from the resurgence of economic activity. Small-cap stocks, or shares of small companies, are safer investments than large-cap stocks, or shares of large companies, because smaller companies have more exposure to the American economy.

Large-cap companies are more dependent on exports, which won't recover as quickly, he said. Corporate and high-yield bonds probably will post higher returns than government bonds, a trend Kleintop said was seen in the second quarter.

Now is a good time for investors to review their asset allocation but not to abandon any long-term plans.

More Biz in Tough Market: Success Secret #11Don’t let summer’s laze reach your wallet