Tags: Stocks | invest | Economic | Crisis

Analyst: Stay in Stocks Despite Global Economic Crisis

By    |   Wednesday, 11 July 2012 07:26 AM

Although the global economic crisis is not encouraging to the market, stocks are where to invest for the second half of the year, especially healthcare stocks, Joshua Brown, vice president Fusion Analytics Investment Partners LLC and blogger, told Yahoo.

“All the news is terrible, there’s nothing but risk ahead of us,” he stated. “Yet, when I look at the landscape of things I can have money invested in, I keep coming back to this concept that I want to be in stocks.”

Brown added that he just doesn’t buy any stock and he’s not all in stocks or leveraged out.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

“Everyone knows that Europe is a disaster and China is not growing. We all know,” he stated, noting that this is all priced-in to stocks “until it is priced-out.”

“We’re going through hell so we can get back to something approaching normalcy,” Brown added.

While admitting to having picked some losers, he noted that other picks are performing “insanely well given the news flow. These stocks seem to take all this bad stuff in stride and grind higher.”

“I’m doing what’s been working. I’m doing consumer defensive names. I’m doing energy names with high dividends,” he said. “And healthcare has been on fire.”

Brown particularly likes the SPDR S&P Biotech (XBI) exchange-traded fund (ETF).

“It owns 40 of the best biotech companies publicly traded in equal amounts,” he told Yahoo.

The ETF “makes a new high every two days, I mean literally,” Brown noted. “Since it broke out, I think there hasn’t been a week where it hasn’t made a new high.”

He explained the underlying reasons for the highs as being related to demographics and secular growth, which “defy, frankly, whatever the new headline from a Belgian summit is.”

“The boomers are the most selfish generation in history,” he stated. “I love the boomers …, but as their final act of vain glorious selfishness, what they’re going to do in the next 20 years is try to replace every single body part and figure out how to live forever.

“This is bullish for healthcare stocks,” he added.

While New York University economist Nouriel Roubini said that a “Perfect Storm” of economic events forecast to strike the global economy in 2013 is gathering steam earlier than expected and would derail the global economy, Brown discounts this thinking.

If all this happens, “you will have bigger worries than how your portfolio is doing,” he said.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

© 2021 Newsmax Finance. All rights reserved.

Wednesday, 11 July 2012 07:26 AM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved