Jim Barrow, co-manager Vanguard Selected Value
"If you miss the first month of the boom, you will have missed a big part of it. Things move very quickly.
"Tobacco is one area that's historically been okay or even good in this kind of sluggish environment. It's a very profitable business. We own UST, Carolina Group and Reynolds American in Vanguard Selected Value. In Vanguard Windsor II, we own Altria and Imperial Tobacco.
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| Row 0 - Cell 0 | The Worst Is Over |
| Row 1 - Cell 0 | The Best Ways to Invest in Bonds |
| Row 2 - Cell 0 | Spotting a Stock-Market Bottom |
| Row 3 - Cell 0 | 5 Risks That Weigh on the Markets |
"We also like defense companies, like Northrop Grumman and General Dynamics. In a recession, the government will try to spend money any way it can, and defense is certainly one way.
"This may be strange coming from a stock jockey, but high-quality municipal bonds are in a unique situation today in that they offer pretax returns higher than those of Treasuries. This is extremely unusual and is an indicator of stress in the financial system.'
Jean-Marie Eveillard, manager First Eagle Global Fund
"The current financial crisis is the worst since the Great Depression.
"Investors want to believe it will come and go as the previous half-dozen crises have because the Fed will flood the system with money. But the Fed's actions are increasing the risks of inflation, of a continuing decline in the dollar and of some holders of Treasury debt saying, 'Hey, our notes are no good, are they?'
"TIPS [Treasury inflation-protected securities] are expensive, but they're still an attractive investment. Remember, it's not just the interest rate that's indexed to inflation; it's the principal, too. Gold can also be insurance.
"Whenever a sector, as with financials today, is under heavy pressure, investors stop discriminating. But the financial sector is not homogeneous. We like American Express's business model. So when the stock declined recently, we acquired a fairly substantial holding."
Bob Rodriguez, manager FPA Capital and FPA New Income
"I am focusing on capital preservation. It is better to save money than to go out there and lose it.
"I smell risk where others don't, so I have 40% of FPA Capital in cash. Our financial system is going through a transition, and when something is changing and I don't understand it, I don't play it.
"The credit crisis has already expanded well beyond the housing market and has seeped into the credit-card and auto-loan industries. I predict that this crisis will become even more pervasive. I believe that there will be more defaults in the area of commercial real estate loans in the second half of 2008.
"The worse the situation gets now, the more optimistic I become. At another point in time, I will be as aggressive and greedy as anyone else."
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Quiz: Do You Really Know How Social Security Benefits Are Taxed?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
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Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
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3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
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What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
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How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
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What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
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How to Invest for Fall Rate Cuts by the FedThe probability the Fed cuts interest rates by 25 basis points in October is now greater than 90%.
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Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
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How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
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Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
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Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
