This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"An excellent idea for 2009 is PowerShares Value Line Industry Rotation (NYSE: PYH), says growth stock expert Tom Bishop.
In his BI Research newsletter, the advisor explains, "The fund only buys stocks that earn Value Line's top rating. For years, I have sought an easy way to invest in the Value Line stocks ranked 1, and now, here it is.
"If you look at the top 10 worst declines in the stock market back to the depression, these averaged 43%, with a median of 40% and makes the current bear market the second worst on record.
"And the average rebound in the 12 months following the low point? A whopping 55.6%. We may have hit that low point on November 20th. Only time will tell, but I have noticed that while the bad news keeps pouring in, the market is now up about 20% since then despite it. This is a possible sign that we have hit bottom.
"I am recommending PowerShares Value Line Industry Rotation, which is comprised of 75 stocks ranked 1 by Value Line, restricted to its top 50 ranked industries, with two in each of the top 25 industries.
"Value Line assigns a 1 rank to the top 100 of the roughly 2,000 stocks it follows for year ahead performance and this universe of top-ranked stocks has outperformed all others, for decades.
"This provides a quick way to put money to work in the stock market in a diverse basket of highly rated stocks.
"Value Line is currently ranked third for performance over the past 25 years by the Hulbert Financial Digest and recently was one of five that made the HFD's 'Honor Roll' for above average performance in up and down markets.
"Through June 2008, the latest period for which data is available, the top one hundred stocks (ranked 1) had an average annualized gain of 13.4% since 1980. Any questions? This is an excellent choice for almost anybody's portfolio."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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