Neil Cavuto was joined by Jim Rogers, president of JimRogers.com; Gregg Hymowitz, founder of Entrust Capital; Alexandra Lebenthal, president and CEO of Lebenthal & Company; and FOX News Senior judicial analyst Judge Andrew Napolitano.
Downer or Upper?
The Dow has not lost ground for three straight years since WWII. But just about everybody says it will happen again this year. Not Neil though, he believes the Dow will keep rising and end the year in the black.
All of Neil’s guests disagree. They think the Dow, S&P 500 and Nasdaq will be down for the year. But they do think the 8-week rally has further to go, but not that far and not that fast. Jim also thinks we are still in a bear market and stocks will eventually go back down.
Neil also asked his guests what they would buy or sell in this environment.
Alexandra thinks Blue Chip stocks have run their course and that small stocks will be the next group to run higher. She recommends investors to buy Small Cap Value Funds.
Gregg says he thinks financial stocks, like credit card issuer MBNA Corp (KRB), are a good buy as the economy and market improve. He owns it.
Jim says he would sell the major indexes if the Dow does end the year higher. He’s currently short Fannie Mae (FNM).
Bye or Buy Bulls?
With holiday sales making up 25 percent of all retail sales, will we say bye-bye to our economy and Bull Market if holiday shoppers are not buying big time?
Gregg thinks expectations are so low for the holiday season, that while he does not expect it to be robust, the contrarian in him says it may surprise us on the upside. Jim thinks we will have a weak holiday season.
Alexandra pointed out that there are six less days to shop this year because Thanksgiving falls late in the month. She thinks that could hurt sales. Judge Napolitano thinks we will have a strong holiday shopping season and that the economy is doing better than economists are predicting.
Neil also asked what retail stock his guests would buy or sell right now:
Gregg likes and owns Abercrombie & Fitch (ANF) because he likes their new product line. But he recommends selling Amazon.com (AMZN) because he thinks it has run up too far and is over priced.
Alexandra recommends buying The Gap (GPS), because she thinks it has turned around and is back in fashion. She does not own it.
Jim recommends selling McDonald’s (MCD). He says the company is getting squeezed on both sides-- sales are falling and costs are rising. He does not own it and is not short it.
Head to Head: Kill All The Lawyers?
Neil Cavuto says frivolous lawsuits like someone suing fast food companies for their weight problems, or a stock broker because their stock loss problems is hurting businesses and our country. He thinks a sue-happy people turn themselves into victims and not take responsibility for their own decisions. John Lawrence Allen, attorney with law firm John Lawrence Allen says consumers need these kind of lawsuits to protect their lives and their pocketbooks.
FOX on the Spot
The Judge predicts that the U.S. attacks Iraq by February 2003!