Citigroup Inc (NYSE:C), Weyerhaeuser Company (NYSE:WY) and International Business Machines Corp. (NYSE:IBM) were named by David Dietze and Jeff Saut in a discussion on Fox Business network as some of the picks for a market correction.
The picks come as Fox Business Network discussed what possible companies to invest in when a market correction happens in light of the current bull market.
According to Point View Wealth Management CIO David Dietze, there is bound to be a market correction and that people need to make their shopping list correct today. Companies which should be looked at are companies that are dominating their market, returning cash to shareholders and are generally are not too favored.
Raymond James chief investment strategist Jeff Saut agreed that we are due for a market correction but that we are in a secular bull market that will continue for years to come.
Meanwhile, in the case of Citigroup Inc (NYSE:C), Dietze said that their firm view financials as the most out of favor sector today. This sector has not recovered from the 2007 highs, he said, adding that Citigroup Inc (NYSE:C) fits their selection of companies in the sector that should be in people’s portfolios now. According to the executive, Citigroup Inc is a global bank that people around the world will continue to transact with and is trading at just 70% of book value.
As for Weyerhaeuser Company (NYSE:WY), Saut said that it is a second derivative play on a pickup in the housing market. He said that Weyerhaeuser Company (NYSE:WY) will benefit from first-time buyers returning to the housing market.
Dietze added that International Business Machines Corp. (NYSE:IBM) is another example of a good pick at the moment. He noted that International Business Machines Corp. (NYSE:IBM) plans to return $50 billion to shareholders via stock buybacks through 2015 plus another $15 billion in dividend payouts. Furthermore, he said that systems by International Business Machines Corp. (NYSE:IBM) are so entrenched in the world that it will be really hard for the company to disappear. It’s also a great consulting name, he added.
Watch the discussion below.
Citigroup Inc (NYSE:C) shareholders includes Boykin Curry’s Eagle Capital Management which reported about 15.23 million shares in the company by the end of the first quarter of this year. Another shareholder in Citigroup Inc (NYSE:C) is Ken Fisher’s Fisher Asset Management which had about 11.07 million shares in the company also in this period.
Weyerhaeuser Company (NYSE:WY) investors includes Jean-Marie Eveillard’s First Eagle Investment Management which had about 14.28 million shares in the company by the end of March. Another investor in Weyerhaeuser Company (NYSE:WY) is Martin Whitman’s Third Avenue Management which reported about 6.54 million shares in the company also by the end of March.
Meanwhile, International Business Machines Corp. (NYSE:IBM) investors includes Warren Buffett’s Berkshire Hathaway and Ken Fisher’s Fisher Asset Management which reported about 68.36 million and about 3.10 million shares in the company respectively by the end of the first quarter of 2014.
Disclosure: None
