• Neil Cavuto was joined by Gregg Hymowitz, founder of Entrust Capital; Jim Rogers, president of JimRogers.com; Ben Stein, economist and former advisor to President Nixon; Kathy Boyle, president of Chapin Hill Advisors; Gary Kaltbaum, president of Kaltbaum and Associates; and Yolanda Gaskins, attorney and radio talk show host.

    Terror no Longer a Worry for Investors?

    Neil Cavuto: Worries over another terror attack at home are heating up this holiday weekend after a new study says we're still not prepared for the worst. But is Wall Street (search) telling you just the opposite?

    Jim Rogers: The market has moved on to other things. Investors are now worried about interest rates, dividends and earnings. It has forgotten about terrorism for the moment. It will come back if we have another terrorist attack or if we have another battle in the Middle East.

    Kathy Boyle: I disagree with Jim. I think investors are still very careful and I think the slightest blush will make the market take a dive.

    Neil Cavuto: Ben Stein, why haven't we had a dive yet though?

    Ben Stein: I think the market is taking a pass at every bit of bad news that it gets. The market is ignoring all the bad news we're throwing at it. The market ignored the very bad news on Thursday about unemployment. The market is happy, happy, happy. It's in bubble land.

    Gregg Hymowitz: I think the market is clearly focusing on earnings and earnings haven't come through that much yet to justify the multiples. That being said, I think there's still big questions. Where is Usama bin Laden? Where is Saddam Hussein? We should be concerned. The market is gaging that the economy is going to pick up, but there are still some big unanswered questions out there.

    Jim Rogers: There will be more attacks. If you don't think there will be, we're all living in dream land.

    Kathy Boyle: The market will go down if terrorists attack our transportation systems in D.C., New York or another major city. Terrorists are out there. They're regrouping and they don't like us.

    Ben Stein: I think the terror that people should be afraid is the terror they will feel when they wake up and they see that the Nasdaq QQQ's have no earnings. Or that the Dow is at 34 times earnings. I would not be putting any money into stock. I'd be putting it all under my pillow at home.

    Gregg Hymowitz: The bond market had a different read on the economy than the equity market. Bonds went down because they were looking at the manufacturing numbers and were bullish. And the stock market looked at 6.4 percent unemployment and was negative.

    Jim Rogers: Profits are up. The economy has been getting better.

    More for Your Money: Bigger Paychecks = Bigger Rally?

    Neil Cavuto: The tax cuts went into effect last week. And as a result, the average paycheck had about $21 more in it. It may not sound like much but it will buy a tank of gas. And when you add it all up, it's nearly an extra $2 billion in the pockets of Americans each week. Gary Kaltbaum, will all that extra cash help the market?

    Gary Kaltbaum: The full magnitude of the tax cuts will be felt throughout the next year and I think that can only be good for the economy and help the market in the long run.

    Jim Rogers: I'm very much in favor of tax cuts. I don't think there are very many people in the world who don't like tax cuts. The market has been going up because of these tax cuts. The economy will come later.

    Gregg Hymowitz: Federal taxes may have gone down but state taxes have gone up. People who live in New York pay 18.8 percent higher real-estate taxes. Average hourly earnings are down. Wage earnings are down. These tax cuts are going to be a net negative.

    Ben Stein: I must say, Gregg is taking a contrary viewpoint to every economist who's ever been teaching in any graduate school. Saying that fiscal stimulus is not going to help the economy is against every principle of economics. I'm just so shocked.

    Neil Cavuto: What stocks would benefit from this economy Ben?