What to do with $50,000 now
Given the uncertain economic picture, you probably have a chunk of change squirreled away. Here's how to best use that cash.
Be a bull
Pick industries that get a big boost when the economy picks up, such as makers of industrial goods, auto parts, and clothing, suggests Paul Larson, an equities strategist at Morningstar. These 4 stocks have estimated annualized five-year earnings growth rates of more than 10% and P/E ratios below the S&P average of 14.
Avon
Est. growth rate: 11%
P/E ratio: 13.7
YTD return: 2.1%
5-year annualized return: 5.6%
Johnson Controls
Est. growth rate: 15%
P/E ratio: 12.6
YTD return: 11.5%
5-year annualized return: 9.7%
3M
Est. growth rate: 11%
P/E ratio: 13.6
YTD return: 6.2%
5-year annualized return: 5.6%
United Technologies
Est. growth rate: 12.2%
P/E ratio: 13.1
YTD return: 4.9%
5-year annualized return: 8.5%
NEXT: Build an all-weather portfolio
Last updated October 18 2010: 12:00 PM ET
