Do your homework and buy when other investors are afraid: sound advice from Ken Kam, portfolio manager of the Masters 100 fund. In this edition of StockWatch: Between the Bells, the Marketocracy co-founder offers insight into his investment strategy.

Agreeing with recent StockWatch contributors, Ken says now is the time to be bullish. The ongoing mortgage meltdown may have spooked the credit markets, but companies themselves are doing well. Ken sees choice buying opportunities available for investors who have done their research.

Alas, Ken says it's still too early to return to the housing sector, despite discounted shares throughout the sector. The Federal Reserve's rate cut last month may have eased the worries of securitized mortgage owners, but the immediate future looks gray for homebuilders.

Instead, Ken recommends hunting for opportunity in the energy sector. Pausing recently after three years of growth, the energy sector now looks primed to gush again, if oil's unprecedented highs are any indicator.

Just looking for a hot tip? Ken's got one for you: Elan (NYSE: ELN). With buyout buzz surrounding its partner Biogen Idec (NASDAQ: BIIB), Elan could soon make a play for full rights to their joint multiple sclerosis drug, Tysabri.

Want more tips? Check out these recent StockWatch interviews:

• Midas Funds portfolio manager Thomas Winmill
• Timothy Sykes, author of An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund
• AOL Money Coach Hilary Kramer