Bob Sellers sat in for Neil Cavuto and was joined by Jim Rogers, president of JimRogers.com; Michelle Girard, senior vice president of Prudential Financial; Price Headley, investment strategist of BigTrends.com and Molly de Ramel, Fox News Business correspondent.
The Dow saw its third best point gain ever on Monday, which was the first trading day after the amazing rescue of those trapped miners. And the Wednesday before that, the Dow had its second biggest gain as investors saw the first "perp walk" when FBI agents arrested former Adelphia executives for securities fraud. So is the market being controlled by investor emotions or is this all just a coincidence?
Jim says it was just a coincidence, but he does think there is always a lot of emotion near market bottoms and highs. Michelle agrees with Jim, and recommends investors to separate emotion from the hard facts and fundamentals. Price says investors should learn to become more rational and willing to be a contrarian when most other investors rush to buy or sell. Price says he likes Cognizant Tech (CTSH) because he thinks tech stocks will rebound. Jim thinks mid-sized companies will outpace the market and recommends buying Russell Midcap I-shares (IWR).
Stocks soared between July 24th-July 31st, then gave back a lot of those gains on August 1st and 2nd. Is this an example of how investors should sell into a rally to lock in some profits?
Price says you've got to be able to be more active, to be able to take your profits, and look to get in the market on the next pull back.
Jim says investors might want to pocket some profits from financial stocks which recently ran up. He recommends selling Bank of America (BAC), which is up 12 percent since July 23rd.
Price agrees that the financial sector is ahead of itself. He recommends selling J.P. Morgan (JPM) and Citigroup (C), which are up 19 percent and15 percent, respectively, since July 23rd.
Michelle says municipal bond prices are near record high levels, and now may be a good time to sell some to lock in profits.
Head to Head: Attacking Iraq Will be Good for Market and Economy?
Bob says the sooner we go after Iraq and Saddam Hussein the better, for America and your money.
Radio talk show host Nancy Skinner says just the opposite. The old adage, “war is good,” is wrong.
FOX on the Spot
Price says the Nasdaq jumps 20 percent, Dow and S&P jump 10 percent by October!
Molly thinks Bernie Ebbers, WorldCom’s ex-CEO, & Enron's ex-execs are next to be handcuffed!
Jim predicts great buys and huge returns for distressed corporate bonds!
Michelle doesn't see a double-dip recession or a rate cut by the Fed!
Bob disagrees with Michelle. He thinks the Fed will lower rates!