By Bret Jensen
The market is marching to its worst quarter as far as performance in four years. Investors are currently facing myriad headwinds thanks to the uncertainty caused by the Federal Reserve as well as a tepid global economy and a strong dollar. . . .
Energy & commodity stocks have been hit even harder this year thanks to plunging prices. . . .
. . . I have been surprised by how vicious this decline has been in certain sectors of the market. I have been slowly deploying the cash I had built up before the recent pull back in the market into primarily large cap growth names that are now providing long term attractive entry points. . . .
. . . the price of oil will stay lower and for longer than most pundits were predicting even a few months ago. . . .
This means I continue to be almost entirely absent in holding any energy stocks here even after their tremendous decline. I think there will be more pain before the sector bottoms out. . . .
. . . I am allocating some new funds to sectors of the economy that will benefit from the price of crude oil and its derivatives remaining very low for at least several quarters if not years. . . .
The recent turmoil in the market could last a while given the tepid state of the global economy. Investors should use the opportunity to build positions in companies that should benefit over the long term by huge plunge in crude prices and whose stocks are very cheap on a valuation basis.