BOSTON (MarketWatch) -- Louis Navellier, president of the Navellier funds and editor of the Blue Chip Growth Letter and Emerging Growth Letter, says that the current stock market is "very narrow," with leadership coming from just a few sectors.
While some investors are bargain-hunting in financial services and real estate, Navellier said in a radio interview that he's avoiding domestic financials completely because "even when you find a good one, there's no buying pressure." Instead, Navellier favors defense, health care and resources companies right now.
Navellier told Chuck Jaffe, MarketWatch senior columnist, that growth stocks -- even some names that have been flying high with huge gains for 2007 -- remain at reasonable valuations right now compared with value stocks, which may be cheap but which have no prospects for growth.
Navellier recommended that investors buy Southern Copper , Tsakos Energy Navigation /zigman2/quotes/209262575/composite TNP -3.26% , United Healthgroup /zigman2/quotes/210453738/composite UNH +0.29% , Graftech International , GigaMedia /zigman2/quotes/204964238/composite GIGM +3.72% and Vasco Data Securities International , characterizing Southern Copper, Graftech, GigaMedia and Vasco as particularly strong buys.
Jaffe's radio show regularly features expert reviews of stocks and mutual funds suggested by MarketWatch readers; to request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you to Chuck Jaffe .