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"Annaly Capital (NYSE: NLY) is in the sweet spot," says Steve Sjuggerud in Daily Wealth. He says, "It borrows money at a low interest rate and invests it at a higher rate -- and earns the 'spread'."

"The cost of money is historically low, and it's headed lower. Meanwhile, relative to the cost of money, the return on money is higher than it's ever been.

"The ultimate way trade on this historic discrepancy, for high-returns with very low risk, is through shares of companies like Annaly, which is now s now paying a 16% dividend.

"In the latest-reported quarter, the company borrowed money at 3.5%. (The credit markets have calmed down a bit, so its cost of borrowing should be even lower next quarter.)

"It invests the money in government-guaranteed bonds. You remember how the Treasury bailed out Fannie Mae and Freddie Mac? It wiped out shareholders. But it explicitly guaranteed the bonds.

"In the latest-reported quarter, Annaly earned 5.6% interest on these risk-free bonds. Therefore, it earned a 2.1% spread. If the company uses seven times leverage, a 2.1% spread means a 14.7% return on its money.

"Analysts estimate the company will earn $2.50 per share next year. It pays out essentially all of its earnings in dividends. So that'll be a dividend yield of about 19%. This is ridiculous. An opportunity like this only appears during market turmoil like we're experiencing now.

"This is a historic moment. The difference between the cost of money and the return on money relative to that cost is at the most extreme levels I've seen in my career. Take advantage, and buy stocks like Annaly today."

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.

"Valuations for even the best-placed, most well-established companies in the energy space are sitting at levels unseen since the late 1990s when oil prices collapsed to around $10 per barrel," says energy sector specialist Elliott Gue.

Here, the editor of The Energy Strategist looks at Schlumberger (NYSE: SLB), noting, "The firm active in just about every imaginable market and I regard the company as a top-notch indicator of ongoing trends in the oil services business."

"It's clear that there's been some slowing in demand, and the credit crunch has had an impact on the fundamental business. But the reaction in the stock market over the past three months goes well beyond even a worst-case scenario.

"Bottom line: Many energy-related stocks are pricing in a severe recession and recent action in the broader markets is reminiscent of sentiment characteristically seen near market lows. The short-term outlook for the energy patch is much better now than it was during the bear market in 1998 and 2002.

"I regard Schlumberger as a top-notch indicator of ongoing trends in the oil services business and, more broadly, international oil and gas drilling activity. I always pay close attention to what Schlumberger has to say in its conference calls and, as usual, this quarter's call was instructive.

"During times such as these, I like to focus on big companies with clean balance sheets that pay decent dividends," says Glenn Rogers.

Here, the contributing editor to Internet Wealth Builder reviews his current stock holdings for a trio of global favorites offering upside potential while still allowing investors to "sleep well at night."

"Diageo Plc (NYSE: DEO) is well down from my original recommended price but compared to the overall market they have performed respectably.

"Meanwhile, the company recently issued a statement confirming its previous guidance of profit growth of between 7% and 9% in 2008.

"The company reported that organic net sales grew 6% in the three months to Sept. 30 and that there has been no material change in the financial position of the group during the period. Buy, with a target of $90.

"I have owned Knightsbridge Tankers (NASDAQ: VLCCF) longer than any other in my portfolio and it has never failed to pay a hefty dividend. The stock is currently trading at $17.40, thus yielding an incredible 17.2% based on a quarterly dividend of 75c a share.

"Even in tough economic times, Sara Lee (NYSE: SLE) should fair well thanks to its offering of non-cyclical goods," says quantitative analyst Vahan Janjigian, editor of The Forbes Growth Investor.

"Sara Lee is a leading producer of branded foods, beverages, and personal care products. Roughly 50% of sales are generated outside of the U.S. Leading brands include Ball Park, Hillshire Farm, Jimmy Dean, Sara Lee, State Fair, Earth Grains, and Senseo brand coffee products.

"Management launched a comprehensive restructuring plan in 2005 to focus on core products and maximize operating efficiencies. These actions yielded $218 million in annualized cost savings in fiscal 2008.

"Food commodity costs soared earlier this year. However, SLE has been able to pass costs to customers through price increases. Furthermore, it has benefited from growing volumes. Fiscal Q4 net sales grew 12.2% year-over-year to $3.5 billion.

"With its earnings announcement, management issued fiscal 2009 guidance. It expects net sales to grow 4-6% year-over-year to $13.7-14 billion and pro forma earnings to grow 8-18% to 90-98 cents per share.

"Since issuing guidance, economic conditions have deteriorated significantly. This could lead to increased trading down activity to lower-priced brands or private-label goods.

"Also, the strengthening dollar has turned the foreign exchange tailwind into a headwind. Yet food commodity and energy costs have fallen significantly, which could provide margin relief for the company."

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.

"The new administration will likely soon launch a new spending program to put people back to work and boost the economy," says Jim Powell, adding, "That's even more likely now that the financial crisis is in full swing and growth is declining."

In his Global Changes & Opportunities Report he looks at General Cable (NYSE: BGC) as a play on the rebuilding of the nation's electric power grid.

"Politicians at all levels have also voiced strong support for rebuilding our woefully inadequate infrastructure. Because building roads, bridges, electrical grids, and so on, will employ many voters, I think allocations for such projects will go to the top of the government's spending list.

"That's especially true since infrastructure projects will also funnel billions of dollars to state and local governments that are facing hard times. All in all, modernizing the the electric power grid should be another very pro?table long-term investment.

"I believe the most promising beneficiary of the electric power project will be General Cable. The company produces products for a wide variety of applications including large cables for long distribution networks.

"Church & Dwight Co. (NYSE: CHD) continues to do well what it has done since 1846: sell baking soda," notes Tracey Ryniec, who has chosen the stock as the latest Zacks Elite Stock of the Day.

The advisor explains, "In these turbulent financial times, investors have been turning to companies with a long track record of selling essential name-brand products and Church & Dwight is one of those companies.

"Church & Dwight is a consumer products company which produces, among other things, ARM & HAMMER baking soda, dental care toothpaste and Super Scoop Clumping Cat Litter.

"It has also been on an expansion tear in this decade. In 2001, the company acquired USA Detergents, Inc. and the laundry brands XTRA and Nice'N Fluffy.

"The expansion continued later that year when CHD acquired Carter-Wallace, Inc, which had brands such as Arrid Antiperspirant, Trojan Condoms, Nair Depilatories and First Response Home Pregnancy and Ovulation Test Kits.

"Seattle-based Plum Creek Timber (NYSE: PCL), the nation's largest private landowner with more than eight million acres, has caught our eye," says Bill Martin.

In his BullMarket.com advisory, he explains, "Earnings have been stunted in recent quarters by the housing slump, but the company sports a strong balance sheet and an asset base that thanks to nature only gets larger and more valuable as time goes by."

"Plum Creek, which operates as a real estate investment trust, reported surprisingly solid Q3 profit. It posted net income of $69 million, or 40 cents per share, for the quarter ended September 30th, compared with a profit of $59 million, or 34 cents per share, for the same period a year ago.

"In the 2007 quarter, fire losses in Montana forced the company to report a $4 million non-cash expense, or two cents per share, related to fire losses experienced in Montana.

"The company's EPS results topped the expectations of Wall Street analysts by a penny a share. Revenue grew to $414 million, up 2% from $407 million last year. The sales results were a bit short of the consensus of $419.8 million.

"For more than 180 years, Consolidated Edison (NYSE: ED) has served the world's most dynamic and demanding marketplace: metropolitan New York," notes Dennis Slothower in his Stealth Stocks newsletter. Here, he explains why ConEd is his "stock of the month."

"Con Edison, our latest 'stockj of the month' provides electric service to about 3.2 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County.

"It also provides electric service to 300,000 customers in southeastern New York and adjacent areas of northern New Jersey and eastern Pennsylvania.

"Con Edison's competitive energy businesses participate in segments of the electricity industry that are less comprehensively regulated than our regulated businesses.

"These segments include the operation of electric generation facilities, trading of electricity and fuel, sales of electricity to wholesale and retail customers, and sales of certain energy-related goods and services.

"I can't tell you how tough it is to find and recommend a company based on my strict selection criteria. I have never seen so many stocks in my universe in steep down trends. While there are some good companies paying high dividends, their stocks are in a free fall.

"Con Edison is a strong utility company that I feel confident will continue to pay a nice fat dividend. The 10-year U.S. Treasury bond is yielding about 4%, while Con Ed's dividend is yielding 5.3%. We get a good combination in Con Ed: a high yield and possible increase in the stock price."

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.

"If you can tolerate the volatility, it's a good idea to begin dipping back in to the stock market, in solid companies with strong cash balances, little debt and great prospects," says wireless sector expert Nikhil Hutheesing.

In The Forbes Wireless Stock Watch, the advisor asks, ""In the long run, smart investments today will lead to profits down the road. One of those companies, that I now think looks attractive, is the Canadian maker of the BlackBerry - Research in Motion (NASDAQ: RIMM)."

"The Canadian company introduced the BlackBerry in 1999 and it quickly became a must-have way for employees oflarge companies to communicate through email and voice wirelessly. In its fiscal 2008 (which ended in February) the company sold nearly 14 million devices (more than double the year before).

"Recently, though, the financial crisis has dealt a strong blow to the company. Investors doubt whether RIMM can repeat the 90% growth in revenues that it achieved in fiscal 2008.

"Not only is the slowing economy a threat to growth but so is increased competition. Apple's iPhone, for example, has been a hit among consumers and now the company is pushing into the corporate market, trying to erode Research In Motion's market share.

"Wal-Mart Stores (NYSE: WMT) just recently announced better than expected third quarter sales and earnings," observes Charles Payne. While cautious on the retail sector, the editor of WStreet Strategies is bullish on the world's largest retailer.

"In the past neither rain, sleet, nor snow could stop shoppers, but it is now proven there is one thing they aren't impervious to...massive job losses. People have run dry, owe more money and debts than they can service, and seem to be stuck waiting for relief.

"The strong results for Wal-Mart's third quarter are a sign of the times, where cash strapped consumers are being very selective in their purchases.

"Although the headlines are playing up the company's modest earnings warning for the fourth quarter, which was due to the strengthening of the U.S. dollar, we believe the underlying business remains fundamentally strong.

"Although equities tend to have attractive multi-year growth rates, there is always risk," caution Ron Rowland and Brandon Clay.

In their Invest with an Edge, they explain, "That's why investors have been taking a second look at bonds, specifically municipal bonds." Here's an ETF offering exposure to the muni bond sector.

"Affectionately called 'munis', municipal bonds have enjoyed a resurgence among retail investors, who are buying munis for three reasons:

1) Munis Have High Yield & No Taxes in Difficult Markets

"Municipal bonds are unique investment vehicles. They offer yields, but the interest is not taxed by the IRS. That way, the 'effective' yield for the muni is often higher than on taxable bonds. Moreover, as prices for munis have been falling, yields have been rising.

2) Munis Are Relatively Safe Investments

"When you're buying a muni bond, you're actually loaning to a state/local government or their agencies. Although cities can go bankrupt – thus preventing you from receiving back your initial investment – at least we can vote on governors and mayors.

"As a result, munis are a safer investment than many corporate bonds. Munis are one way for investors to find safety in this market.

"iShares MSCI Emerging Markets (ASE: EEM) is a bet on on a short-term bottom in emerging markets," says international expert Nick Vardy in The Global Bull Market Alert.

"This recommendation is based on the belief that the initiatives of policy makers across the globe will trigger a sustained, short-term bounce between now and the end of the year.

"First, the policy responses to the global economic crisis have been both massive and coordinated. These efforts combined will ease the shortage of dollars that has ravaged emerging markets.

"Second, emerging market equities are as cheap as they have ever been. The benchmark MSCI Emerging Markets index is trading at a P/E in the single digits, down from 18.5 a year ago.

Despite economic woes, cash-strapped consumers, and forecasts for a dismal holiday retail season, value investor Charles Mizrahi still sees value for long-term investors in high-end retailer Coach (NYSE: COH).

The editor of Hidden Values Alert explains, "Founded in 1941, Coach has grown from a family-run workshop in a Manhattan loft to a leading American marketer of fine accessories and gifts for women and men.

"Coach is one of the most recognized fine accessories brands in the United States and in targeted international markets. Its modern, fashionable handbags and accessories use a broad range of high-quality leathers, fabrics and other materials.

"The company has created a sophisticated, modern and inviting environment to showcase its product assortment and to reinforce a consistent brand position wherever the consumer may shop.

"We are seeing quality names at fire-sale prices, and I think you must take advantage of that," says income expert Nilus Mattive in Dividend Superstars. Here's a trio of favorites.

"Pfizer (NYSE: PFE) recently reported great third-quarter results. The company tripled its profits from the same period a year ago. While last year's results were hurt by a one-time charge, Pfizer is obviously seeing continued demand for most of its drugs.

"I consider the stock dirt cheap, and while there is a slim chance of a dividend reduction, the shares absolutely belong in your long-term income portfolio at this level.

"I feel the same way about General Electric (NYSE: GE). While profits were down 22% this quarter, the company still boasts a AAA credit rating and a very attractive yield. It is a solid long-term income holding.

"Huaneng Power (NYSE: HNP) has been punished along with the rest of China's stocks. But things are going well on the fundamental front. The company increased its power generation 12.7% in the first three quarters of 2008, and revenues gained 36.8% over the same period a year earlier.

"It may post a loss because coal prices remain elevated, but I remain bullish on the company's long-term prospects, and consider it the best dividend-paying Chinese stock to own."

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.

"One stock that is holding up well and is poised to do well during hard times is Portfolio Recovery Associates (NASDAQ: PRAA), which is America's most effcient debt recovery company," says Jim Powell in Global Changes & Opportunities Report.

"The company -- which has been on our buy list -- has become especially attractive for the economic conditions I expect to see over the next few months, and probably much longer.

"Portfolio Recovery -- which is America's most efficient debt recovery company -- buys packages of non-performing debts from major credit card companies, and typically pays only 2.6% of the total amount owed. With such a low initial cost, it doesn't take a large collection rate to turn a tidy proft.

"As more consumers default on the colossal debts they ran up during the housing boom, the company should see a great deal of new business.