James Investment Research Inc, with $1.35 billion in assets under management, recommends that financial advisers and money managers urge investors to focus on high-value, long-term investment stocks in the upcoming volatile year, the Dayton Daily News reports.

The investment management firm forecasts that for 2006, there will be trouble in the housing market, causing consumer confidence to plummet, and therefore a slowdown in spending. Also, high oil prices could also hurt the economy and slow down the stock market.

"Don't overextend, don't take on too much debt," said Frank James, founder of the company.

Gold stocks, utility, finance and companies in non-cyclical industries - such as Chiquita Brands International, SuperValu Inc, Toro Co., and Alderwoods Group - will be safe bets for investors in 2006, as per Barry James, executive vice president of the firm.

If oil prices stabilize, then energy stocks could rebound, and then technology stocks could be a good buy as well, company officials said.

In addition, China and India will remain high-growth markets well into the next year, and Ireland is a good investment area.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.