So where should you look? Bill Morse, senior vice president of Chicago-based Ziegler Wealth Management, likes the high-end retail sector, because the wealthy have shown an enduring appetite for luxury items, such as jewelry from Tiffany & Co. Mr. Ellis favors so-called defensive stocks, such as makers of consumer staples, along with broad market indexes that he says have been "oversold" recently. Jim Kee, president of South Texas Money Management in San Antonio, sees value in handpicking individual stocks that enjoy a competitive advantage in critical industries, such as computer security.
But what about the recent plunges in stocks? That's actually a positive sign, investment pros say: Stocks are now cheaper.
"We've been waiting for a sell-off. That sell-off has come," says Nicholas Sargen, chief investment officer for Fort Washington Investment Advisors, a Cincinnati-based money management firm. "We think this is a good opportunity."