Jim was stressing that investors need to look at what money managers are thinking right now in order to make money. “When it comes to managing money, there are lots of rules, but only one commandment: Obey the business cycle,” Jim said. Jim thinks the best way to make money for the next three months is to look at supermarkets and drug stores to find winning stocks. Jim predicted that Kellogg Company (NYSE:K) and Anheuser-Busch Companies Inc. (NYSE:BUD) which he owns for his trust will both go up to $55. He also thinks that PepsiCo (PEP) and The Procter & Gamble Company (PG) will go to $70 and Merck & Co (MRK) will go to $50. In the supermarket sector Jim likes Groupe Danone (DA) and Tootsie Roll Industries (TR). Sure, there are other supermarket stocks, Jim said, but he doesn’t like betting on them. Jim thinks that William Wrigley Jr Company’s (WWY) bubble has popped and The Hain Celestial Group Inc (NASDAQ:HAIN) is too speculative. Instead, Jim said he likes companies such as Danone that have a huge international presence, and Tootsie Roll has been around too long for anyone to call it a speculative name. Perrigo is a generic drug maker, and although Jim said he doesn’t like generic labels, he believes that it would be a good buy if Fed Chairman Ben Bernanke crash lands the economy.

For plays on the drug store stocks Jim likes Chattem Inc (CHTT), Matrixx Initiatives Inc. (NASDAQ:MTXX), and The Perrigo Company (PRGO). Chattem makes Gold Bond and Icy Hot and Matrixx makes Zicam Cold Remedy. Jim thinks both CHTT and MTXX are both cheap and he isn’t worried about the lawsuits at MTXX.