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Bulls & Bears
This past week's Bulls & Bears: Gary B. Smith, Exemplar Capital managing partner; Pat Dorsey, Morningstar.com director of stock research; Scott Bleier, HybridInvestors.com president; Tobin Smith, ChangeWave Research editor; Patricia Powell, Powell Financial Group president; Kinky Friedman, former Texas gubernatorial candidate and author of "You Can Lead a Politician to Water, But You Can't Make Him Think."
Trading Pit: Stocks "Up" In 3rd Quarter! Proof Huge Rally Is Coming?
The Dow, NASDAQ and S&P 500 were all up in the 3rd quarter. This despite a summer of stunning sell offs, a mess in the mortgage market and a credit crunch. Can we expect an even bigger rally in the 4th quarter?
Gary B. Smith: The fourth quarter is going to be great! The Dow will certainly tick over 14K and the NASDAQ will have an even bigger rally. We got through this credit crunch, the Federal Reserve is behind us, and housing is near a bottom if not at a bottom. We have all these bad things behind us, and the market is ready to go up.
Scott Bleier: This rally has been bought and paid for by the Fed. They pumped billions of dollars into the market, and what they have bought is 500 points on the Dow and time: time to work out the problems that the economy and credit markets are having. They gave a great opportunity to sell.
Tobin Smith: People who have jobs spend, and they will continue to spend. Companies that are selling outside of the United States are going to continue to invest. The magic secret sauce here is this global market and global expansion, which has never happened before.
Patricia Powell: I think we will come in with a strong finish. It's going to be a great 4th quarter. Most of the bad news is already out. Subprime, the slowing economy and the housing slump are old news. The Fed has begun lowering rates. The only concern is if Congress throws in a tax increase, but that is not likely so soon.
Pat Dorsey: News is good overall, but we aren't out of the woods yet. We haven't completely passed the credit crunch. There are a few more time bombs left to come out.
Busting Illegal Workers: Should Businesses Do the Dirty Work?
Kinky Friedman: Once we secure the border we need to “sock it” to businesses that take in illegals. We should have a taxpayer ID card; the idea has been there for some time and we're just not doing it. I don't trust the government to do anything correctly.
Tobin Smith: Businesses are always the whipping boy on this issue. The fact is they are hiring people, who happen to be illegal immigrants, because we don't have people in the United States to do many of these jobs. It's becoming a convenient source of labor. The government has gone “wink, wink” and allowed this to happen for twenty years. And now all of a sudden corporate America has do be the watchdog here? I don't think so!
Gary B. Smith: It's not just the businesses that are at fault. It's the entire US economy. The fact is businesses want to provide what consumers want. They want a low cost of goods and a wide range of services. The average age of the American in the work force is almost 42 years old and getting older. They are brining in young, vibrant labor. We need these people!
Stock X-Change: Fourth Quarter Touchdown Stocks!
The names our guys say will finish the year on a winning streak.
If you want to watch what each had to say about his stocks, click here.
Tobin Smith: Anadigics (ANAD)
Gary B. Smith: Microsoft (MSFT)