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Michael Cuggino, CEO of The Permanent Portfolio, has some stock picks for investors attempting to get into this market.
"I mean I think we look for value all the time. A relative value. So some things that come to mind in our portfolio would be something like a British Petroleum or (BP) on the energy side. Energy's been a beaten down sector as of commodities. Um, great dividend yield. I think oil prices are going to trend up. So big macro bet there, but it makes sense. A similar name would be a Freeport McMoRan (FCX) , copper prices are improving. There's going to be demand for copper with technology, with, building and construction, et cetera. Uh, a dividend yield, I think one and a half percent roughly, but a lot of room for improvement of coffer prices do improve. Um, I would include Facebook (FB) , which is you don't think of Facebook and value per se, but a on a relative valuation basis, Facebook's trading roughly to market multiple and we still think the growth rates are going to well exceed that," Cuggino said.
"So, if you're patient and can ride out the headline risk, that's not a bad bet in a high growth area. Um, and then probably another name and a similar bed, but a different company altogether would be Intel (INTC) . Um, a lot of resources, a lot of demand for technology and chips and devices all over the place and they've got the capital, the broad base to take advantage of that over time," he continued. "I think they've got some new issuances coming out. They've got a brand new CEO, they've, they've gotten that issue off the table. Also a good dividend, I think access to 2%, um, and room for growth there with good earnings and I do think the semiconductor, and we've seen a lot of bounce in semiconductors so far this year and I think one reason is that from a macro longer term standpoint, semiconductors with are going to be there as an industry group that, you know, I was just going to be a demand for a while and so the bed beaten down, it's good chance to pick some up and kind of ride with it for the long term."