Neil Cavuto was joined by Jim Rogers, president of JimRogers.com; Tom Dorsey, president of Dorsey, Wright & Associates; David Nelson, CEO of DC Nelson Asset Management and Molly de Ramel, Fox News Business corespondent.
After a five week winning streak the bears came back to Wall Street last week. Was it just a bull breather or a bull breaker?
Tom says his technical data show there are more buyers than sellers in the market and that there is a 70 percent chance stocks will be up in September. Jim agrees with Tom and says the market will rebound in September after a brief dip. David believes the market bottomed out in July and that the Dow will reach 10,000 by year’s end. But he points out, it won’t be straight up as this past week proved.
Neil also asked his guest what stocks they think will move higher this Fall:
Jim recommended natural resource company WMC Limited (WMC), which he owns and says will benefit from rising prices for raw materials.
Tom owns and likes mortgage provider Countrywide Credit (CCR), because he thinks it will continue to benefit from low interest rates. David owns and recommends Zimmer Holdings (ZMH), because he believes the market for the maker of orthopedic implants will grow as baby boomers grow older.
More For Your Money: Stock Idol$
Playing off the popular American Idol show, Neil asked his guests if average investors are better off looking for those hard to find up and coming stocks to help them get “more for their money?”
Jim says yes! He recommends people to be conscious of new products they buy and like. Then research the company that makes the product and determine if they should buy the stock. The stock idol he recommends and owns is Australian wine maker Southcorp, which can be bought in the U.S. over-the-counter market under the tickers STHHF or STHHY. It can also be purchased in the Australian market under the ticker SRP.
Tom says new stock idols will emerge, but not for awhile since investors are still weary over the internet idols that fell when the online bubble burst. His stock idol is Pinnacle Systems (PCLE), which he doesn't own, but says the online video streaming company is the best in the business.
David says he doesn’t think we’ll never see another market full of idols like we saw during the internet boom. He recommends investors to get out of stock idols after making money and not to get greedy. He recommends buying regional airline SkyWest (SKYW), which he owns and says is a fallen idol ready to rise again.
Head to Head
Who’s to blame for the disappearing budget surplus? Geraldine Ferraro, former Vice Presidential candidate and a Fox News contributor, blames the tax cut for the surplus evaporating. Neil says the deficit would have been bigger without the tax cut, and that we should cut taxes more and that the real culprit is over spending by the government.
FOX on the Spot
David says investor confidence and bulls return after 9/11!
Tom predicts no September blues this year. Stocks rise!
Jim thinks bears will beat up pro sports stocks. So sell now!
Molly says former WorldCom CEO, Bernie Ebbers, will get indicted
Neil thinks trade tensions with Europe will get worse.