How should you invest during the second half of 2011? It depends, of course, on who you are as well as on whom you ask.
Whatever else they do, investors should avoid letting daily headlines distract them from their investing strategies, said Jonathan Hoenig of Capitalistpig Asset Management and author of "Greed Is Good: The Capitalist Pig Guide to Investing."
"Investors do themselves a disservice by trying to analyze economic news, because it's always lagging," Hoenig said. "The market is the leading indicator."
Hoenig is among a half-dozen experts surveyed by TheStreet for their No. 1 tips to American investors in the year's second half. Here's a rundown of what each recommended.
Jim Cramer: Buy big exporters
With a weak U.S. jobs market providing economic headwinds, investors should be considering shares of companies with strong exports, said Jim Cramer, markets commentator for TheStreet and host of CNBC's "Mad Money."
One stock Cramer likes is General Motors (GM, news). Investors are rightly excited about the automaker's prospects in China, he said.
"I expect that by September . . . China will no longer be actively trying to slow its economy down. That means GM can start selling many more cars," Cramer said. "It is a huge swing factor, and the base in the stock is showing you that's what's to come."
Other exporters favored by Cramer include engine maker Cummins (CMI, news), mining giant Freeport-McMoRan Copper & Gold (FCX, news) and earth-moving-equipment manufacturers Caterpillar (CAT, news) and Joy Global (JOYG, news).
Cramer also likes apparel makers, on the premise that the spectacular run-up in cotton prices has peaked. Again, he favors companies that do significant business internationally.
"My two favorites are Phillips-Van Heusen (PVH, news) -- because its Tommy Hilfiger and Calvin Klein brands are huge overseas, and it put through monster price hikes -- and the Jones Group (JNY, news)."
Jonathan Pond: Look for dividends
Dividend-paying stocks and mutual funds tend to fare better in dour markets, but there are ample reasons for investors to seek dividends if the bull market continues, said Jonathan Pond, a financial planner, author and host of the PBS program "Grow Your Money With Jonathan Pond."
The 15% tax rate on dividend income is one reason Pond favors dividends now.
"If you're interested in individual stocks, consider AGL Resources (AGL, news), which has a dividend yield of 4.3%; Johnson & Johnson (JNJ, news), which yields 3.4%; Procter & Gamble (PG, news), which has a 3.3% dividend yield; and Vodafone Group (VOD, news), which has a 5.3% dividend yield," Pond said.
"If you prefer to cast a wider net with exchange-traded funds, the pick of the litter is the Vanguard Dividend Appreciation ETF (VIG), which has a 1.9% dividend yield," he said. "If your preference is for an index fund, the Vanguard Dividend Appreciation (VDAIX) is a mirror image of the ETF."
