Investors need to own gold and silver as a hedge against U.S. dollar debasement by the Federal Reserve. They should start by picking up shares of Barrick Gold (ABX) , says Mike Underhill, portfolio manager of the RidgeWorth Capital Innovations Global Resources and Infrastructure Fund. Underhill is also bullish on U.S. Steel (X) , up 156% year-to-date, even though the steel manufacturer is trading at a pricey 24 times next year's earnings. He said U.S. Steel will be able to maintain its market share, as well as its pricing, as the prices for scrap steel trend higher. Weyerhaeuser (WY) is another one of Underhill's top picks despite the fact that it too trades at an expensive P/E ratio of 28 times 2017 forecast earnings. Underhill says the timber company will benefit from a long but steady housing recovery. Finally, Underhill is a fan of KapStone Paper and Packaging Corp. (KS) , which is down 20% year-to-date after an earnings miss caused a massive selloff in February. KapStone engages in the production of containerboard, corrugated products and specialty paper.
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