What is your favorite sector? Wordell: Energy is our favorite sector, more specifically, North American natural gas producers. Natural gas prices are at unsustainably low levels due to the commodity trading below the marginal cost of production. We own Williams ( WMB - Get Report), Talisman Energy ( TLM), Noble Energy ( NBL) and XTO Energy ( XTO), which will all benefit from what we expect will be much higher natural gas prices over the next two years. What sector or stock would you avoid? Wordell: We are most cautious on the consumer discretionary sector. The consumer has too much leverage and there is too much capacity in retail. It will take multiple years of deleveraging from the consumer to fix the debt problems that have been created over the last 25 years.