Look who's buying now

Fortune asked 13 money managers about the current downturn, and what they're buying (or not buying) now.

Jeff Mortimer
Jeff Mortimer
CIO, Charles Schwab Investment Management

Bull and bear markets end with volatility, which is why you see 600-point stock market swings. This triggers a lot of emotional investing, even though underlying company fundamentals haven't changed all that much. You have to remember that 10% to 20% corrections are simply the price of admission for being a stock investor, and that your portfolio should always include defensive strategies for this reason. If your allocation forces you to sell in a down market, take a deep breath and look within because you've probably taken on too much risk.

If you're creating a defensive strategy, make sure you have exposure to healthcare stocks like Cigna (CI) and Aetna (AET), as well as consumer staples like Coca-Cola (KO). Also, IBM (IBM) hasn't disappointed anyone and the company pre-announced great earnings. Even so, it got caught in the downdraft. Now is a time to get this sort of solid performance at a discount.
Last updated February 06 2008: 10:16 AM ET

John Neff

Leon Cooperman

Christopher Ailman

Michael Steinhardt

Whitney Tilson

Jeff Mortimer

Nouriel Roubini

Bill Stone

Bob Rodriguez

Ron Muhlenkamp

Ken Heebner

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