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; Pat Dorsey, Morningstar.com director of stock research; Scott Bleier, HybridInvestors.com president; Patricia Powell, Powell Financial Group president, and Gary Kaltbaum, Kaltbaum & Associates president.
Trading Pit: Does Wall Street Think Iran Wants WWIII?
Iran: We know it funds terrorists like Hezbollah. We know it's working with nuclear material and continues to defy the United Nations. And we know its leader wants Israel wiped off the face of the earth.
Is Wall Street concerned Iran actually wants to start World War Three?
TOBIN: Wall Street is concerned when someone acts the way Iran's leaders have acted. But let's not forget, if they were to make a move, Tehran would be wiped off of the face of the earth. Wall Street is concerned because you have to be concerned with the oil issue. Oil runs our economy. But I don't think Iran is stupid enough to start something because they know what the consequences will be.
PATRICIA: Wall Street should care, but it doesn't. Wall Street has the attention span of a two year old. Wall St. will only care if the behavior on Main Street is changed — if consumers stops spending, if we are afraid to go to the mall, if we stop charging, or if we stop driving.
GARY B: Wall Street is wonderful at whistling past the graveyard. But Iran won't be so overt and make a direct move against us or one of our allies. They will do it like how they just attacked Israel — through Hezbollah or some other terrorist group. Wall Street will probably shrug its shoulders, until it's too late and there's some type of major action on the part of Iran
SCOTT: The stock market is in denial about Iran's true intentions. Stocks don't want to face the idea that Iran is trying to be a global colonial power. The stock market does not understand that Iran's intention is to take over the world. They want to take over Iraq, Kuwait, and Saudi Arabia and control half of the world's oil. That's what they want. Wall Street is in complete denial about Iran.
PAT: This is one of the background issues like missiles in North Korea or Hugo Chavez in Venezuela. It bubbles in the background and makes the headlines once in a while. If they do anything, it won't be overt; it will be through proxies, because any big attack will assure their destruction. But as far as Wall Street, this is a relatively low concern.
GARY K: We are dealing with a person that doesn't care if the world ceases to exist. We cannot have a nuclear Iran. In the short-term, the market could care less because Iran is years away from attaining anything that even resembles nuclear capability. But there are huge long-term repercussions. Also, Russia and China have not helped. They have said nothing against Iran or placed no sanctions either because they economic issues with them.
GOP or Dems: Who Is Wall Street Rooting For?
Republicans criticized for out of control spending. Democrats accused of being soft on terror and wanting to push through tax hikes. With the midterm elections quickly approaching, who does Wall Street want to win?
PATRICIA: In the short run, the stock market hates change and uncertainty. So, it is easy to say the Wall Street would prefer no change in the status quo. But Wall Street is not Main St. I think that this election is the Democrats to lose. But if anyone can do it, it would be the Democrats!
GARY K: Normally, the stock market does better with Democrats in control, but these are a different type of Democratic party. This is not the JFK Democratic party. They have already stated they want to raise taxes immediately. If they win Congress and the Presidency, we would see 50 percent tax rates. Wall Street and the economy will both hate this.
GARY B: Honestly, I'm not sure the market really cares right now, as there doesn't seem to be much of a difference in the two parties. Both spend like drunken sailors and support for the war seems waning on BOTH sides! The market probably would like nothing better than a draw.
TOBIN: Wall Street wants the Republicans to win. It would be an economic disaster for us to leave Iraq now. We have to finish what we started. This is very important for our credibility. Plus there are tax issues. Democrats want to take away tax benefits from the top 2 percent of earners, and this will scare the heck out of the market.
PAT: Neither party wants to cut spending. Neither party wants to focus on the long-term issues. These are the issues that have the potential to do serious damage to this country, such as the unfunded liabilities like Social Security, Medicare, and Medicaid. No one wants to address these huge issues. And that's the real problem.