Neil Cavuto was joined by Jim Rogers, president of JimRogers.com; Michelle Girard, a senior vice president at Prudential Financial; Gregg Hymowitz, founder of Entrust Capital; and Philip Kaplan, president of PK Interactive.
A new week, and a new group of Wall Street crooks to talk about. Xerox and WorldCom are the latest bombs. But should investors stay calm or sell off all stocks when they hear bad news like WorldCom's earnings restatement?
Philip says investors are correct to be worried about all stocks they own.
Jim and Gregg say investors should not sell all stocks when one company announces bad news. They both like large cap stocks right now because they say everyone is hyping small and medium-sized stocks.
Jim recommends and owns S&P 500 "Spiders" (SPY), which track large cap companies in the S&P 500 index. Gregg recommends Foot Locker (Z) for investors looking for a company with clean books.
Michelle says the market is pricing in the risk that there are other WorldComs and Enrons out there. She says investors looking for a trustworthy investment should buy Taxable Municipal Bonds.
More for Your Money: Panic Before Profit?
Would outright panic on Wall Street give you more for your money? Jim says a steep sell-off is needed before the market bottoms out. He thinks one may be coming soon and that when it happens investors should be buying stocks. Jim and Gregg also say some of that panic selling has been going on for the past five weeks.
Gregg thinks Citigroup's (C) stock has been sold off too much and will rebound soon.
Jim thinks the Materials Select Sector (XLB) fund will outpace the market.
Head to Head: Should Congress Stay Away from Wall Street?
Many lawmakers say Congress should clean up Wall Street? Neil says that cure is worse than the disease. Vermont Congressman Bernie Sanders, says it's the job of Congress to protect investors from the crooks making headlines in Corporate America.
Fox On the Spot:
Gregg: Earnings shocker: falling dollar raises large cap profits!
Michelle: New reports show economy is stronger than expected!
Philip: Here come the clones: cloning companies pop up overseas!
Jim: SEC gets serious, corrupt execs go to jail!
Neil says we’ll hear more about accounting irregularities but it won't be the huge numbers people are talking about and markets will remain calm!