Neil Cavuto was joined by: Bob Guccione, Jr., editor-in-chief of Gear magazine; Jim Rogers, president of JimRogers.com; Jason Calacanis, editor & CEO of Venture Reporter; Molly Falconer, FNC Business Correspondent and Jeffrey Lichtman, Trial Lawyers Care
No Worry Stocks
The Dow rose 2% last week, despite news of our worst military casualties sine the war on terror began in Afghanistan and a report that New York City may have been a nuclear target. Should investors be more worried and what stocks should investors own if there is another terrorist attack?
Jimmy says investors are focusing more on the economic fundamentals that show the economy is rebounding, and that they are right to do so. Jason agrees, saying investors should be bullish because economy is growing and companies will be making more profits this year. Bob says he thinks the economy has been rebounding for the past few months and that Americans are, and should be, optimistic. Molly says she is surprised how the market has shrugged off serious concerns about the war on terror. She also points out that the violence between the Israelis and Palestinians is escalating to dangerous levels.
Neil then asked what investors should do if there is another terrorist attack in the U.S., and if the unthinkable happened and there was a nuclear attack.
Everyone agreed that a nuclear attack would send the economy and stock market crashing, and that investors should get out of market.
Jimmy says investors should buy defense stocks and raw materials if the U.S. suffers another terror attack. Jason says investors should buy big name consumer product stocks like Procter & Gamble (PG) and Colgate-Palmolive (CL).
More For Your Money
Sinners vs. Saints: So-called sin companies, like casinos, are bringing back strip shows to try and attract new business. While so called saint companies, like Walt Disney, are bringing back classics like Cinderella and Peter Pan to attract new business. Will the sinners or saints be more successful, and which ones should you invest in?
Jim says sin is in. He recommends a Latin American beer company called Union de Cervecerias, which can be bought on the Lima, Peru stock exchange under the ticker of BKJa. He says the stock has been unfairly beaten down due to concerns about Argentina's weak economy. Jimmy also likes Rio Tinto (RTP), an international natural resource company. Both companies trade on the NYSE as American Depository Receipts.
Jason likes Anheuser-Busch (BUD). He says even though its stock price has risen considerably in the past few months, it still should increase more this year.
Head to Head
Neil and Jeffrey Lichtman, an attorney who helped found a pro bono legal group for 9/11 victims, debate how 9/11 victim funds should be distributed. Nearly $3 billion dollars has been donated to 9/11 charity funds so far, yet hundreds of millions have not been handed out to victims and their families. Neil says all the money should be divided evenly between all the victims and distributed now. Jeffrey disagrees, saying each victim should get a different amount based on their income needs and other personal factors.
Fox On The Spot
Jason says the recent success of PayPal.com's (PYPL) initial public offering shows the market is rebounding. He also expects to see other successful internet IPOs like NetFlix and Overstock.com.
Molly says the market has shaken off worries about Enron. She also says stocks that have fallen because of accounting concerns, like IBM (IBM) and Cisco Systems (CSCO), will rebound.
Bob says EchoStar's (DISH) proposed purchase of DirectTV from General Motors' Hughes Electronics (GMH) unit will fail. He says News Corp (NWS), the parent company of Fox News Channel, will end up buying DirectTV.
Jimmy says President Bush's decision to place tariffs on imported steel will help boost North American steel stocks. He likes AK Steel (AKS) and Alleghany Corp (Y).
Neil says the improving economy will boost President Bush's popularity and that he will buck the trend and help Republicans win seats in the House and Senate in this year's mid-term elections.