What the experts say

Banking on the underdog

It will take some time before Citigroup shakes its reputation as the “big ugly” of the financial-services industry, said Andrew Bary in Barron’s. But, given its “strong” capital position, hefty loan-loss reserves, and supreme global brand, the stock is a “good bet” at less than $3 a share. Other than American International Group, it’s the only financial company currently trading at a steep discount to its tangible book value. “Citi is the one stone that investors haven’t turned over,” says John McDonald, Sanford Bernstein’s banking analyst. Don’t expect the stock to hit $10 a share any time soon, let alone bounce back to its 2007 peak of $55 a share. “Yet this tarnished but still attractive global franchise holds the potential to generate nice profits and decent stock gains as the economy turns.”

Profiting from picky consumers

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The economy may be showing signs of improvement, but consumers don’t seem ready to resume their old ways, said Reshma Kapadia in SmartMoney. “A new kind of thriftiness will rule the day,” and investors should look for companies primed to take advantage ofthat. Consumers will drive their cars longer, shop for bargains, and favor “staycations” over elaborate vacations. “Such tactics among consumers have already helped discount-designer retailers TJX and Ross Stores.” It’s also good news for the likes of lawn-and-gardening company Scotts Miracle-Gro and auto parts distributor Genuine Parts. “Companies are also spending more discerningly.” That bodes well for technology companies that help businesses contain costs. Winners could include Oracle, which bundles tech services, and Symantec, which offers data storage. Outsourcing firm Cognizant should also get a boost.

A retirement test run

Wondering whether you’re in any shape to retire? said Tara Siegel Bernard in The New York Times. Retirement boot camp may be in order. The idea comes from North Carolina financial advisors Marcia Tillotson and Joy Kenefick, who put ­clients through a year-long simulation of retirement to help them understand the implications of their decisions and make any necessary adjustments to their plans. The exercise—which you can mimic on your own—requires tracking each and every expense, taking a close look at assets and liabilities, ­putting a “disproportionate amount of money in tax-deferred accounts,” and making up the difference by drawing down on immediate cash savings. If this fake retirement seems too tough to handle, then you’re not quite ready for the real deal.