Tuesday, December 23, 2008

According to the CNBC Stock Blog, why did Jeff Mortimer praise "some" corporate debt on Monday?



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Question: According to the CNBC Stock Blog, why did Jeff Mortimer praise "some" corporate debt on Monday?

Answer: lower risk option than Treasurys

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Long-Term Picks: Banks, Integrated Oil

Credit continues to crunch. Oil has collapsed. But Jeff Mortimer recommends a bank and an oil giant. What's going on here? Hint: The chief investment officer of Charles Schwab Investment Management is thinking long-term.

Recommendations:

"We continue to like JP Morgan (Chase) and Exxon Mobil ," he told CNBC. "One financial, one integrated oil; you may look back five or 10 years from now and say you should have got them."

On the bond side, Mortimer favors corporates over Treasurys.

Should You Fear a Govt. Bond Bubble?
"The studies we have done show that as spreads come in, stocks should also do well, so I think you're getting a lower risk option in some of the corporate debt," he said.

Disclosures:

Disclosure information for Jeff Mortimer was not immediately available.

Disclaimer

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URL: http://www.cnbc.com/id/28347677/