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Excerpt from Raymond James strategist Jeffrey Saut's latest essay:

In such an environment, where we can’t decide if the economy is slowing into recession, slowing to a muddle, or reaccelerating (although recent figures have a decided slowing tint), we have tried to focus on themes, and special situations, that make sense to us. Energy is one such theme, for while the U.S. seems to be slowing economically, the rest of the world is not, as demonstrated by China’s roughly 13% increase in crude oil demand. To take advantage of that demand, we have recommended most of the Canadian oil sands complex, which had a fairly big rally last week. This is particularly impressive in light of the Canadian Dollar’s recent strength (we remain bullish on the Canadian Dollar). We have also recommended a number of energy names that presented at the Raymond James Institutional Conference in March. Accordingly, ideas like Petrohawk (NYSE:HK) [Strong Buy], Kodiak (NYSE:KOG) [Strong Buy], 6.7%-yielding NGP Resources (NASDAQ:NGPC) [Outperform], and Helix (NYSE:HLX) [Strong Buy] have performed well over the last few months. Yet for non-stock-specific investors, our recommendation of the 5%-yielding Blackrock Global Energy (NYSE:BGR) ETF has been a risk-adjusted way to participate in the energy theme, whose shares broke out to the upside in the charts last week. We have also embraced non-economic-sensitive themes like homeland security using L-1 Identity Solutions (NYSE:ID) [Strong Buy], which recently received a large contact. Then too is our non-economic-sensitive “water theme.” While the non-stock-specific investor may want to consider the Water PowerShares (NYSEARCA:PHO), our Canadian-based analysts have been recommending Laperrier & Verreault [TSE: GLV.A] (Outperform) as a way to participate in the water theme.

Source: Energy Stocks That Will Grow Even if U.S. Markets Decline