Top 10 Stocks to Own for the Rest of the Year

Now for the good news (finally). A bull market in stocks will sneak up on you, with some stocks that have nothing to do with mortgages or real estate making all-time highs by year-end. The yields on stocks will be so high and the price-to-earnings (P/E) ratios and P/E-to-growth (PEG) ratios so low that shrewd investors will take advantage of these bargains.

When these stocks increase in price, you will read in the press that it is just a temporary bounce or a short squeeze before a bigger fall. But it won't be any of these; it will be a real bull market in these stocks. This good news will be ignored, as most of the financial headlines focus on people losing their homes, mortgage companies going under and hedge funds collapsing.

Here are 10 stocks that should be much higher by year-end. Keep in mind, I am not recommending them, as I never make recommendations, but suggesting them for further research. None of these names should be affected by subprime or hedge fund problems.

Lafarge(LR Quote) is a France-based company that sells construction materials and should benefit from infrastructure rebuilding. It has a low P/E of 11.6, and it yields 1.9%.

Another infrastructure stock is URS Corp.(URS Quote), which provides engineering and technical design services. Its PEG is a favorable 1.5.

PepsiCo(PEP Quote) manufactures Pepsi, Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist and many other beverages, which people will keep drinking, even in a weakened economy. Pepsi has a PEG of 1.8 and a yield of 2.2%.