The recent selloff in stocks may indeed pick up steam said Jimmy Lee, CEO of Wealth Consulting Group. ‘I am really concerned about this trifecta of Greece, Cuba and what’s going on in China,’ said Lee. ‘Maybe all of those together is a recipe for the correction everyone has been waiting on for a long time.’ In order to protect themselves, Lee said the easiest way is to raise some cash and store it as ‘dry powder’ for dip buying later on. As for where to put that money to use once the storm passes, Lee recommends consumer staples names, which do well at this stage in the business cycle, as well as healthcare. ‘We are still overweight healthcare and in a defensive style of money management I think that getting dividends out of healthcare stocks, and with the M&A activity in healthcare, that’s a good place to be,’ said Lee who added that he also uses inverse exchange traded funds to hedge his long positions.
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