DISCLAIMER: THE FOLLOWING "Cost of Freedom Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cost of Freedom Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.
Bulls & Bears | Cavuto on Business | Forbes on FOX | Cashin' In
Bulls & Bears
This past week's Bulls & Bears:
• Gary B. Smith, Exemplar Capital managing partner
• Tobin Smith, ChangeWave Research editor
• Scott Bleier, HybridInvestors.com president
• Pat Dorsey, Morningstar.com director of stock research
• Danielle Hughes, Divine Capital Markets president
• Tom Adkins, Re/Max Fairlawn agent
Trading Pit: State of the Stock Market
Tuesday, President Bush will deliver the State of the Union, and Wall Street will be listening very closely—especially after Friday's big day. The Dow was just shy of a triple digit gain. And has now completely wiped out the previous Friday's horrible sell off.
What is the state of the stock market?
Tobin Smith: The stock market is healthy! What I really like about this market is that it goes forward two steps, back a step, forward two steps, back a step, that's a healthy market, not a "Viagra" market. Good news is coming up and is getting rewarded. On Friday, oil was at $65 and the Dow went up 97 points. I cannot be more excited! We have a healthy market. Bush is going to help us again. And if you are not investing in stocks right now, you're making a big mistake.
Danielle Hughes: The stock market is like a turtle running. We've got other things against us: higher interest rates and terrible energy costs. We have huge ships coming in from China, filled with products, leaving empty. That's put a real drag on certain parts of the economy. I still think we are going to do very well and the market will make gains, but I believe we're like a turtle running.
Gary B. Smith: I don't think this market is at all like turtle. And I live in Maryland where we love turtles! We really had a chance to tank. We sprinted up the first part of the year, broke out well past 11K, then dropped back, but the market just kind of hung in there. I think the Dow will go back above 11K and then rip higher. I'm still holding on to my 25 percent plus year.
Pat Dorsey: I'm certainly not in the plus 25 percent year category. The market's healthy, earnings are pretty strong, but evaluations aren't real cheap. They're just about average for the past several decades. So it's going be a fine year—up like 5 or 8 percent—but not rip-roaring.
Scott Bleier: The market is dynamic. And semiconductor stocks, the bedrock of speculative and technology activity, have really broken out, and that signifies that the market is very healthy. Nasdaq is going to go up 20 percent this year and the Dow will gain 10-15 percent. The market is very healthy.
With the President's State of the Union address coming up, Gary B. picked the best stocks that will keep our union strong.
Gary B. Smith: Building and construction is going on like crazy and steel is behind that. I really like U.S. Steel (X). The stock "digested" its fourth quarter gain. Then, broke out and I see it going to $65. (U.S. Steel closed on Friday at $58.73.)
Danielle Hughes: The main thing that worries me about this stock is labor in the U.S. and China. America is going to have a hard time competing with China over the course of the next ten years. There's a lot of consolidation in the industry and I don't think this is a long-term play.
Gary B. Smith: Next on my list is the Chicago Mercantile Exchange (CME). "The Merc", as its also known, looked like it was dead, but has picked up in the last few months. Next stop: $500! (Chicago Mercantile Exchange closed on Friday at $401.64.)