A defensive holding is Mead Johnson Nutrition ( MJN), maker of Enfamil baby formula. The company has been expanding in China, Latin America and other emerging markets. "Consumers in emerging markets are willing to pay a big premium for high-quality Western brands," says Blum. A stock that can climb when the economy grows is Schlumberger ( SLB), the oilfield services giant. Blum says that as companies seek to obtain oil in hard-to-reach locations, the demand is growing for equipment and services. Schlumberger ranks as a superior competitor because it offers the technological advantages that major oil companies seek.