Neil Cavuto was joined by Gregg Hymowitz, founder of Entrust Capital; Jim Rogers, president of JimRogers.com; Ben Stein, economist; Mike Norman, founder of the Economic Contrarian Update; Meredith Whitney, FOX Business News contributor; and Bill Wolman, chief economist of Businessweek.
Neil Cavuto: History is not always doomed to repeat itself! It is an historical fact, August has been the absolute worst month for the market over the past 15 years. So why does someone here say ignore history and buy stocks now to get more for your money. Meredith you first, you say this August is the time to buy?
Meredith Whitney: With every pullback, comes a great buying opportunity. There's a lot of economic data that shows that the economy is really improving. More consumers own homes than in the last recession. People are concerned about unemployment. It peaked over 8 percent in the last recession. I think the economy has given you every indication that the economy is improving.
Jim Rogers: That's why the market went up. That's old news. The market is looking ahead for the next six months. That's why August is a bad month.
Gregg Hymowitz: More people are unemployed today than we've had in the last 20 years. And most people think those unemployment numbers are understated.
Neil Cavuto: So do you ignore 3 weeks in a row of declining jobless claims?
Gregg Hymowitz: No, I think it's good. I think it's stabilizing. The other issue is refinancing. Refinancing is the thing that was keeping this consumer alive.
Ben Stein: It still surprises me that stocks, even after the rebound in earnings, are still trading at 29 times earnings, 30 times earnings on the Dow, 32 times on the S&P. Those are very high numbers. If I bought anything, I'd buy the Dow Diamonds (DIA). I'd be very wary at these levels.
Meredith Whitney: I think if you look at price-to-growth you've got really good opportunities there. I like EMC Corp (EMC), which is the largest storage operator.
Gregg Hymowitz: One stock that is very cheap is Reebok (RBK). Five dollars of cash on the balance sheet. And it trades at 9 times. There's plenty of these opportunities. You just have to look for them. It's not a perfect science, but that's what the job of a stock picker is.
Ben Stein: But the question is, is the market too high?
Jim Rogers: I make the same point Ben does. The market is too high. Even if Reebok is a great company, it doesn't mean that it will go up if the market is going down.
Gregg Hymowitz: Stock prices ultimately reflect earnings power. It's buying a piece of the company and the earnings they generate.
Jim Rogers: So you're saying if the Dow goes down a thousand bucks, Reebok will go up?
Gregg Hymowitz: No, if the Dow goes down a thousand bucks, Reebok will go down.
Neil Cavuto: Ben, back to you, August typically the worst month. If you're right, it will live true to form and be the worst again, right?
Ben Stein: No, I don't know that it will be the worst month. I know that the market is way too high right now.
Meredith Whitney: I think that a core performing market lends itself to great buying opportunities.
Gregg Hymowitz: Look for opportunities.