Just because you're bearish doesn't mean you have to sit and stew while waiting for this rally to play itself out. If you're mentally and fiscally nimble enough to entertain conflicting thoughts simultaneously you can both despise the market overall and stay long certain stocks, just to hold you over between now and the economic apocalypse.
Such is more or less the strategy of LandColt Trading managing director Todd Schoenberger, a man looking for a 35% drop in 2012 yet able to think of 4 stocks he loves now.
During the last couple months Schoenberger says we've seen great price action in bulge bracket banks. It's a trend Schoenberger would rather watch from the sidelines in favor of the Regional banks, that is to say those banks which are the closest approximation to what used to be called your local bank.
Cullin/Frost Bankers (CFR) is the trader's first pick. His enthusiasm is based in large part of the company's devotion to staying in its home state of Texas. While that seems quaint, if not foolish, in this day of mega-banks Schoenberger says it works to CFR's advantage in two ways. First, the company knows its product and area. Second it takes advantage of Texas' rapid growth, estimated at a million a year for the next 5 years.
If that doesn't sell you, note CFR's 3% dividend, "paying you to wait."Read More »from Market Rally Over? 4 Stocks to Ride Out a Downturn