Have discipline when you construct your portfolio, and stick with it when the market swings up and down. Right now we like healthcare stocks like Express Scripts (ESRX) and Medco (MHS), which manage prescriptions benefits. It's a play on the aging population and it's defensive because drug demand stays fairly steady even when consumer discretionary spending falls.
We like to look for global trends because that is a defensive strategy. This is why we like companies that produce potash, which goes into fertilizer. There is a real supply constraint here and growing demand because food demand is increasing and ethanol demand means more agricultural production. We like Mosaic (MOS), Potash Corp (POT), and Agrium (AGU). In these times of high volatility, stock exchanges will benefit. Their business is soaring. Those stocks include Deutsche Bourse, the Hong Kong Stock Exchange, and the Nasdaq.
Last updated February 06 2008: 10:16 AM ET
