Five Investment Sectors to Consider

Despite shaky market, experts say there are still good opportunities

which sells supplemental health and life insurance in the U.S. and Japan. The company’s cost controls and increasing premium revenue make the stock a good long-term buy. AFLAC shares opened Wednesday trading at $56.42, up 34 cents.

In healthcare, Young points to Johnson & Johnson (NYSE: JNJ), a maker of health care products and provider of services tied to the consumer, pharmaceutical, and medical devices and diagnostics markets. Johnson & Johnson shares opened Wednesday trading at $71.60, up 26 cents.

As the American population continues to age, JNJ is best positioned for continued earnings growth. He says it provides essential health related products and drugs that will improve and prolong the lives of an older population.

Separately, the global equities markets have responded overwhelmingly positive to the information about the federal government’s effective bailout of Fannie Mae and Freddie Mac, says a top investment banker.

Washington, managing director at SBK-Brooks, says the news of the Federal Reserve taking over the two mortgage giants makes now a good time for investors to look at financial stocks that have been beaten down by the mortgage market’s downturn and the subprime mortgage debacle.

Some investors are taking the government’s action — with its move to essentially back about half of the nation’s mortgage market — as a signal that the mortgage sector has essentially bottomed out.

Though he does not have any specific recommendations in the financial sector, Washington says an exchange traded fund or a mutual fund that specializes in financial sector stocks would be a good investment to look at. He cautioned of course that investors should be careful when looking at such stocks or funds because some of those investments still have bad fundamentals.

“A diversified portfolio of financial investments could be timely for a long term investor,” Washington says.

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