"Rio de Janiero-based Petroleo Brasileiro S.A. (NYSE: PBR) is in the heart of the global growth story," says Daniel Frishberg, BizRadio host and editor of The MoneyMan Market Newsletter.
"In general, investors are still seeing selloffs as buying opportunities even though the majority of stocks are in a bear market. We are not sure how long this can continue.
"Our 'Crazy Investor Index' does not yet show the type of extreme fear that is typical at a bottom, so it will probably mill around in short-term rallies and selloffs until something motivates them to panic simultaneously.
"In the meantime, we prefer to buy excellent companies just as the herd decides to stampede. And while our portfolio is now slightly net short we are adding one new long position: Petroleo Brasileiro S.A., often referred to as Petrobras.
"This is an exploration company for oil & natural gas. Even during the recent rise in the price of oil, many of the oil & gas stocks struggled to keep up.
"Petrobras refines, markets, and supplies oil products. They also operate oil tankers, distribution pipelines, marine, river and lake terminals, and thermal power plants, fertilizer plants, and petrochemical units.
"Petrobras is growing very fast and essentially is in the heart of the global growth story. Ironically, this company is cheaper on a valuation basis than the S&P 500. It recently sold off about 10% and we think this is a 'buy the dip' type of stock."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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