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; Pat Dorsey, Morningstar.com director of stock research; Tobin Smith, ChangeWave Research editor; Scott Bleier, HybridInvestors.com president; John "Bradshaw" Layfield, WWE superstar and Northeast Securities senior vice president; Ray Hennessey, managing editor of FOXBusiness.com.
Trading Pit: Housing 'Fire $ale': Time To Buy?
This past weekend, homebuilder Hovnanian had a wild sale like none seen before! Slashing prices up to $100,000. Will this save our housing market or cause it to collapse?
GARY B: This is a terrific sign! When a company like Hovnanian slashes prices, it's going to get a lot more people into houses. Rates and mortgages are still historically low. The market reacted very positively to the news. Hovnanian was up almost ten percent on Friday. This signals a bottom in the housing market.
RAY: I would hate to be the guy living next door to the house that just sold for two hundred thousand dollars less than what you paid for it. There is now an expectation among consumers that they are going to get low prices. This is going to lower home prices and decrease the value of homes. The valuation matrix has changed, and if it goes down in the rest of the country, it everybody is impacted.
TOBIN: On Monday we'll find out how successful Hovnanian's plan was, because we'll see how many new contracts the company got. If this works, every other homebuilder is going to follow Hovnanian. It is ultimately good for the economy—not in the short-term, but in the long term. This is the beginning of the healing process.
BRADSHAW: Hovnanian did a great thing and the market applauded it. But they are the first. This is a harbinger of things to come. Home prices are the last thing to go down in a housing slump. However, it's going to get worse before it gets better.
SCOTT: Home prices have held up pretty well throughout the carnage of the past few months. This is the long awaited official kick off of home prices finally starting to come down. This is not great news because home prices will be lower and people will "feel" poorer because their homes will be worth less.
PAT: We should take this for what it is. Hovnanian did this because they need to raise cash, and that's a company specific issue not an economic issue.
English Only: Good or Bad for Business?
Habla ingles? Then forget about watching the last Democrats' debate! It was in Spanish—the first ever! But does that make sense for American businesses? Is it good business to say, "English only!"
BRADSHAW: Speak what you want at home or in the break room, but business would be better off instituting an English spoken in business settings policy. English is the unofficial language of business. It is also the unofficial language of this country. What is spoken in break rooms and in the private areas of business doesn't matter. If you don't know English, you hamper yourself as a businessman. It makes it harder to get a loan and do basic business chores.
TOBIN: Businesses are going to do business with people in whatever language because they are the market. A smart businessman does not go about saying what language they want their customers to speak. If their customer is a non-English speaking, and they want to do business with them, then you have to do it.
GARY B: "English only" could be very good for business, but only if it's going to attract more customers. If it's speaking English is not going to attract more customers, than you need Spanish or whatever language. It goes back to the debate whether companies should say, "Happy Holidays" or "Merry Christmas". If they think they are going to attract more customers saying, "Merry Christmas", than that's the way they go. This is the same sort of debate; businesses shouldn't put limits on itself.
Roll out the green carpet… for the $tock Emmy$.
If you want to see what each had to say about his stock, click here.