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
Brenda was joined by: Gary B. Smith, RealMoney.com columnist; Pat Dorsey, director of stock research at Morningstar.com; Scott Bleier, president of HybridInvestors.com; Joe Battipaglia, chief investment officer of Ryan, Beck & Co.; and Mike Norman, founder of The Economic Contrarian.
Summer's over and that means it's back to business!
And stocks are working hard already. In the short week since Labor Day, the Dow is higher, despite a Friday sell-off, and the Nasdaq (search) made even better gains. All this despite what many say was bad news on the jobs front last week.
Joe thinks the market can keep it up and head higher. He believes that jobs will be created and is surprised by analysts who are raising their earnings expectations, unlike the past two years.
Pat admitted there has been a lot good news for the market, but that news is not good enough to support the levels that stocks have reached. He thinks there is going to be a healthy pullback, especially in the tech sector, in the next few months.
Mike agreed with Joe and thinks the rally will continue. Although he did admit he is a little worried about so many people being bullish. He said it was easy to be a bull eight months or a year ago, because there was so much gloom and pessimism. Even so, he still hasn’t seen anything that will affect the momentum of this rally.
Scott said that the economic recovery can continue because bond yields came down, which makes the price of money cheaper. He advised investors to buy stocks when the market pulls back.
Gary B. charted the Nasdaq’s performance since May and said even though it is locked in an uptrend, he thinks it has come too far too fast and is due for a pullback.
Once again it was time to add up all the right and wrong calls the Bulls & Bears have made. First, the good calls.
On October 12, 2002, Gary B. said Yahoo! (YHOO) was going up 50 percent. Yahoo! took off with the rest of tech stocks and is up an amazing 161 percent since then. (Yahoo! closed on Friday at $34.89.) But now Gary B. thinks the stock should be sold because it has peaked. He wouldn’t buy Yahoo! unless it closes above $37.
In the middle of October of last year, Scott took a little heat when he said Sears (S) was going up 25 percent in a year. Since then, the stock is up 94 percent! (Sears closed on Friday at $45.08.) Scott now thinks Sears is too expensive and investors should sell.
At the beginning of the year, Joe said to bank on Citigroup (C) and J.P. Morgan (JPM) in 2003. If you did, your bank account is thanking you—big time! Both have made very good gains since then. Citigroup is up 25 percent (Citigroup closed on Friday at $44.34) and J.P. Morgan is up 35 percent (J.P. Morgan closed on Friday at $34.19). Joe said if you bought these stocks when he recommend to, it’s time to take your profits.
In February, when Joe Millionaire got a million bucks, Pat suggested he should invest his money in Robert Half International (RHI). If Joe took his advice, he’d be doing quite well—Robert Half is up 54 percent. (The stock closed on Friday at $21.83.) Pat still likes the stock and said it’s one to hold on to for a long time.
In the middle of November, when Norsk Hydro (NHY) was trading in the $30s, Mike said it was going to $50. And it certainly did! In fact, since he recommended it, the stock is up is up 37 percent. (Norsk Hydro closed on Friday at $51.75.) But now, Mike thinks petroleum prices will come down, and investors should take their profits.
Then it got ugly…the losing end of the Scoreboard.
On December 28, 2002, Scott said investors should sell General Electric (GE). This wasn’t the best advice because since then General Electric is up 28 percent (General Electric closed on Friday at $31.04.) Scott thinks the stock is now fully valued and would neither buy nor sell it.
In March 2002, Joe said buy Altria (MO), then known as Philip Morris. It’s down 17 percent since that time. (Altria closed on Friday at $41.50.) Joe said due to its ongoing litigation risk, stay away from the stock.
Last September 21, 2002, Mike said inflation and interest rates will rise and the home bubble would burst. Interest rates did rise, but certainly the bubble did not burst because housing is still hot. Mike now thinks the housing market will continue to rise.
At the end of April, Gary B. said the Dow would hit 7,500 before 9,500. His charts betrayed him on this one, because the Dow hit 9,500 first. (Dow closed on Friday at 9,503.) Gary charted the Dow and said sharp rallies can be very surprising and are typical of a bear market. Even though the Dow has risen steadily since April, he doubts it is headed to 10K.
In the middle of March, Pat said Goodyear (GT) was a crappy company. But in the past six months, it has made a tremendous gain of 93 percent. (Goodyear closed on Friday at $7.58.) Pat still thinks the company is crappy and advised not to buy the stock.
Mike's prediction: President Bush taps reserves; gas prices fall far and fast!
Scott's prediction: Housing keeps booming; Centex (CTX) going up 25 percent
Gary B's prediction: Slow down guys! Dow won't hit 10k until May
Pat's prediction: Too far, too fast for tech; Juniper (JNPR) falls 40 percent
Cavuto on Business
Neil Cavuto was joined by Gregg Hymowitz, founder of Entrust Capital; Jim Rogers, president of JimRogers.com; Ben Stein, economist; Tom Dorsey, president of Dorsey, Wright & Associates; Michelle Girard, Treasury market strategist at Wachovia Securities; Robert Kennedy, Jr., senior attorney for the Natural Resources Defense Council.
Neil Cavuto: Two years since the unthinkable happened in America, is our market and economy all the way back? It's hard to believe the September 11 (search) attacks happened almost two years ago. Since then: a massive market sell-off, a war in Afghanistan and Iraq. But no new terror attacks on American soil. On the day before the terrorists struck two years ago, the Dow stood at just above 9600. As of Friday's close, it's very close to that same level. Ben Stein, two years later, has the stock market recovered from September 11th?
Ben Stein: Statistically, the markets have recovered but I think it's lurking in everyone's sub-consciousness that something like 9-11 could happen again.
Gregg Hymowitz: It's interesting because if you go back to that September 10th number, the market is cheaper today than it was back then, using this year's earnings. The S&P was trading at 30 times earnings and now it's trading at 28 times this year's earnings. And the Nasdaq is up 10 percent since September 10th. So it's amazing that the stock market has recovered, but the key question is has the economy recovered?
Jim Rogers: The economy has recovered. The economy is much stronger now than it was on September 10th 2001. Even you, Gregg, have to acknowledge that.
Ben Stein: Profits are rising like mad.
Gregg Hymowitz: Profits are rising, but just from the beginning of this year you've already lost a half a million jobs.
Ben Stein: Yes, but that's always a lagging indicator and they will come back.
Michelle Girard: We were actually in a recession before 9-11. And the recession was just about over right around when 9-11 hit. If you look at the GDP statistics, we've long been above where we were. In terms of how far we can be growing and potential GDP, we are still behind on that front.
Jim Rogers: But the economy is improving very rapidly and profits are improving rapidly.
Gregg Hymowitz: Do you know where the GDP growth is coming from? $40 billion of it is the military. So we are losing the manufacturing sector.
Jim Rogers: Be that as it may, the economy is better.
Ben Stein: We need even more military spending. Our troops are being spread very, very thin.
Neil Cavuto: What stocks that have come back post 9-11 are the good bets now?
Gregg Hymowitz: One stock we like is Viacom (VIA.B). It's trading at 25 times earnings. It's not necessarily cheap, but it mirrors what you're seeing in the economy to a certain extent -- improved advertising spending -- I think Viacom is a very well run company, and it's not a necessarily expensive stock.
Michelle Girard: Gregg, you make a point that we are seeing very rapid growth in the military sector. But that's a very small sector of the economy, and if the consumer were not holding up, it wouldn't matter almost what the government was doing. The truth is the consumer has held up so well considering 9-11. I think retail stocks are good bets right now.
Gregg Hymowitz: Military spending is a small sector of the economy, but my point was it's a large part of the growth we see in the GDP.
Jim Rogers: And Michelle, how long can the consumer keep going. He's maxed out on his credit cards...
Michelle Girard: That's actually not true. We've seen a lot of refinancing activity and consumers have been paying down debt. How could you see car sales at their second highest levels in August? Just when you think, 'Who could buy another car?' They buy another car.
Ben Stein: Personal savings is rising. I always like income stocks. I like ServiceMaster (SVM) because it's a high-income stock. Part of its many, many jobs is cleaning up and servicing buildings. I own this stock and as the real estate sector recovers, as I think it will, they'll do better.
Jim Rogers: And I own UniSource Energy (UNS) which was ruined by a CEO who ran off with a black stripper. The CEO and the black stripper are both gone, and the company is now recovering.
Gregg Hymowitz: What got you interested in this stock?
Jim Rogers: I like to buy cheap stocks. It was ruined, and now it's coming back.
Neil Cavuto: With some of the dividend plays that are now prominent given the President's tax cut, does that enter into your equation at all Jim?
Jim Rogers: Absolutely. Everything else being equal it's an added plus that you definitely want to use.
Gregg Hymowitz: But it's been the wrong thing to do, quite frankly. Dividend paying stocks have dramatically under-performed non-paying dividend stocks in the last year.
Ben Stein: That's true for the last year. But over the long term they've done better, and they have a smaller standard deviation.
More for Your Money
Neil Cavuto: Why the political season could mean we'll all be getting more for our money! Led by Howard Dean, Democrats are hammering on the economy. It's a focal point for the political season. When candidates make the economy and stock market the central theme does that actually help in the long run?
Tom Dorsey: I think it will not help in the long run at all, but in the short run, governments can have a major effect on the stock market and the economy. Back since 1941, we have not had one down pre-election year. We're in a pre-election year right now, and the fix is in. I think more money funnels into the stock market and more jobs in 2004.
Gregg Hymowitz: It all ultimately adds up to higher interest rates and higher deficits. I think it's scary that the Bush administration would need Democrats hammering him on the economy to let him know that the economy is in bad shape.
Ben Stein: The economy isn't bad. The economy is improving rapidly.
Neil Cavuto: Do you think the economy is better than it was a year ago Gregg? We have a whole host of data that should confirm that.
Gregg Hymowitz: There are 4 million jobs lost, a half a million this year alone. At some point the tax cuts are going to end, the re-financings are going to end. The deficits are going higher because of the tax cuts that have been passed.
Neil Cavuto: But Gregg this is a point you get wrong often. 6 percent of the GDP deficits during the Reagan years and we were soaring, off to the races.
Gregg Hymowitz: The Federal Reserve came out with a paper that says for every 1 percent increase...
Jim Rogers: The Democrats do the same thing Gregg. Don't you remember Clinton? He was spending money like a wild horse and the deficit was going through the roof.
Neil Cavuto: Tom, assuming the economy is getting stronger during this political season, what stocks benefit?
Tom Dorsey: With the theme of the political season, I looked at a sector that typically does good in an election year and that's the oil sector. I like ExxonMobil (XOM). It's got a great chart pattern and very low volatility. And it pays a 2.5 percent yield. I think the oil stocks are going to do very well next year, and now's the time to get in.
Jim Rogers: The economy is going to get stronger, but Gregg happens to be right. They're spending a lot of money. And Tom is right, they're printing a lot of money. That's not good for the economy long-term. So I would buy hard assets. I would buy sugar.
Ben Stein: I think there's going to be even more of a defense buildup and this Boeing (BA) tanker deal will go through. I think we desperately need more defense. We're stretched far too thin right now. I like Boeing. I think all the bad news is in the stock, and it's still doing well, despite everyone harping on it. And I predict a major management change there and soon.
Gregg Hymowitz: I think if you watched the Democratic debates on Thursday you'll know that healthcare is going to be a big issue. I like HCA (HCA). All of the candidates are talking about how to increase universal healthcare. And if you're going to play that, I think HCA at 12 times earnings is a good play off of that.
Head to Head
Neil Cavuto: Is the solution to sky-high gas prices right here in the good-old USA? My guest today is Robert Kennedy Junior. He's the senior attorney for the Natural Resources Defense Council. Robert my point is: our main oil suppliers really aren't our friends at all.
So if we want to keep prices down long term we will have to drill for oil here in America wherever we can and whenever we can. And if we inconvenience some caribou while we do it, that's a cheaper price to pay than being held hostage by oil producing Arab countries.
Robert Kennedy, Jr.: The solution is not more drilling in our country. We have between 2-3 percent of global reserves in our country. We use 25 percent of the oil, so really what we have to start doing is manage demand. If we improve fuel efficiency in our automobiles by one mile per gallon, that's double the amount of oil that's in the Arctic National Wildlife Refuge.
Neil Cavuto: What if I say, good idea. But let's do both. Let's look at conservation efforts in this country, which I argue can only go so far, and let's also tap oil anywhere and everywhere we can find it. Even in the Arctic, the point we're talking about is less than 1.5 percent of public lands there. It's not as if we're destroying the environment or killing the caribou.
Robert Kennedy, Jr.: That's not true. By the way, there's lots of other places we can get energy. We have these sacred lands. These are the last large wilderness areas left, probably in the world.
Neil Cavuto: I'm not saying let's make a parking lot. I'm saying let's tap some of it.
Robert Kennedy, Jr.: The part that they're talking about tapping into now is the biological heart of the entire reserve.
Neil Cavuto: I would sooner disrupt the lives of the wildlife there, and it's not that they're going to be slaughtered, they're going to find other locations, than I would have the Saudis disrupt our lives.
Robert Kennedy, Jr.: The cheaper solution and much more efficient solution than exploiting the Arctic National Wildlife Refuge and selling our soul, our country is based in wilderness, our virtues, our values and our history...
Neil Cavuto: But you know very well that it's only a small fraction.
Robert Kennedy, Jr.: That's not true. It's the most important part of the wilderness. It's like killing the head. It's like saying the head is the small part of your body and if we kill that, you won't need that anymore. If we raise fuel efficiency in our automobiles to seven miles per gallon we eliminate 100 percent of our need for Persian Gulf Oil, not just Iraq and Kuwait. The entire Persian Gulf.
Neil Cavuto: Let's say you allow for that. And in the meantime let's tap what we have here.
Robert Kennedy, Jr.: The fastest way for us to reduce our dependency on Saudi oil is through fuel efficiency. Oil prices are going up not because of a lack of supply. It's because of lack of oil refinery capacity and that's not going to improve if we get more oil from the Arctic. Secondly, it's going to take a minimum of 10 years to get any oil out of the Arctic. Thirdly, the oil there is so trivial it's .3 percent of global reserves.
Neil Cavuto: There are many people who disagree with that. Some scientists think there could be substantial oil there.
Robert Kennedy, Jr.: There's only one real study about it, the USGS study. And that study says that there's a 95 percent chance that there is only 3.2 billion barrels of oil in the Arctic. That's less than .3 percent of our global reserves and it won't reduce the price of oil at the pump by even a penny.
FOX on the Spot:
Gregg Hymowitz: Gas stays above $2; major drag on recovery
Ben Stein: Bush calls for a major defense spending boost.
Michelle Girard: Economy strengthens; Dems can't hurt Bush.
Tom Dorsey: AOL (AOL) a stock to own; going higher!
Jim Rogers: Swedes reject Euro; Currency fails long term.
Neil Cavuto: The CEO's of the tech giants with whom I've chatted over the last week confirm what I already knew...orders are up, and companies are replacing their dated technology. Good for them! Good for their stocks! Good for the markets!
Forbes on Fox
Our panelists give you the scoop on all the inside business information before you hear it anywhere else in The Informer segment:
Dennis Kneale, managing editor: Let’s talk about GE. You know, if you look at stocks two years ago versus today, the Dow Jones Industrial Average (DJI) is almost within 5 percent of where it was two years ago. GE (search) is still down 25 percent. GE is lagging behind the entire Dow. Why? I think one reason is because investors don’t realize the value of NBC in that stock. It’s really an odd bird; it doesn’t belong in the company. The Vivendi (search) deal comes along, you merge NBC with Universal. What GE has really done is set up NBC perfectly for a spin-off two years down the road, let’s say.
David Asman: When GE finally buys Vivendi, when that deal comes through, what happens to the stock?
Dennis Kneale: You know, usually when you get a big deal done, your stock, if you’re the acquirer, goes down a little bit – a couple of bucks. A fine time to buy. In two years, I think NBC will be spun off and is going to unlock lots of value
David Asman: So don’t buy this stock, wait until the deal is done?
Dennis Kneale: You might do that, yeah.
David Asman: All right, Bob, Munis. I’ve heard a lot about Munis. What are they? Why do you like them?
Bob Lenzner, national editor: Well, they’re tax-free bonds, and there’re funds of tax-free bonds. Some that are closed-end, you can buy stock in them on the American Stock Exchange. Some very smart money are buying these funds.
Bob Lenzner: Right. You can buy some. I would buy the ones that don’t borrow money, that aren’t leveraged. The higher-yield one that’s on the screen, they have a third of it is leveraged, so they’re borrowing money very cheaply and putting it into these municipal bonds.
David Asman: So, folks, these are tax-free, they give you high yields, what’s wrong with them?
Dennis Kneale: The one thing wrong would be this: I’ve talked to Bob about this, he’s a lot smarter than I am. Even after talking to Bob, I still don’t understand it. Don’t invest in what you don’t understand.
Bob Lenzner: It’s easy to understand. These are tax-free bonds. They’re lumped together in a mutual fund. They are borrowing money. If interest rates go up, you might have to hold it to maturity.
David Asman: All right. Well, what’s easy to understand is rap music. I hate it, but apparently the folks at Reebok (RBK) love it and it helps sales, right Leigh?
Leigh Gallagher, staff writer: They do, it does, and the kids love it too, and that’s what is important to Reebok, the number-three sneaker maker. Reebok is changing the game in these “sneaker wars,” which are quite vicious. It’s going after rappers instead of athletes. “Going after” meaning “signing them,” signing them to endorsement deals. So far, it’s signed up Jay-Z and 50 Cent. The Jay-Z sneaker was the fastest-selling shoe in the company’s history.
David Asman: And all this is good for the stock, but could it be the kiss of death making these deals with rappers?
Dennis Kneale: Well, rappers like 50 Cent sing my life, but I do not want to put millions of dollars into them so that they can then get arrested the next time he gets shot nine times.
Bob Lenzner: The only thing I’m worried about is the incredibly intense competition in this field, back and forth between the major companies. Can the margins really increase? Can the market really increase?
Leigh Gallagher: There’s no doubt that it’s a competitive business, but Reebok, at 16 times earnings, is cheaper than Nike (NKE) and it’s in the middle of a turnaround and still has a way to go.
Makers and Breakers
General Electric (GE)
Vita Nelson, president of The Moneypaper: MAKER
Well, I can’t say I like it now. I’ve liked it for a long time. We believe in dollar-cost averaging and continually picking up more stock in the same company. We’ve held it for a long time. All the companies in our MP63 fund have been there since the beginning, its like an index fund.
David Asman: And it’s a stock you can depend on for a long time. Mike would you have it in yours?
Mike Ozanian, senior editor: BREAKER
I’m a breaker on it. It’s delivered for a long time, I know, but it now has $300 billion in total debt, which is almost equal to its market value. So, I’m a little hesitant right now.
Elizabeth MacDonald, senior editor: BREAKER
I’m a breaker too. It’s like watching grass grow. It also picked up the Vivendi music and movie studio assets, those are extraordinarily expensive to run. And, finally, this is a stock that tracks the economy, it is so big that it follows what the economy does, I want a stock that beats the economy in economic growth.
David Asman: Well, it’s two against one, but I’m going to give you a lead on this. Vivendi, we just heard from Dennis Kneale, sounds like it might be a good deal along the line.
Vita Nelson: Universal Studios can only help the company and create more for its media outlets, it’ll be very helpful for it.
Johnson & Johnson (JNJ)
Vita Nelson: MAKER
We like these companies for long-term holding. They have brand names like Band-Aid. Everybody knows these companies; everybody uses their products. The most important thing about both companies is that they increase their earnings consistently and consistently increase their dividends.
David Asman: Well, Elizabeth, I have to tell you that one product that they have, that I love, is a wheelchair the climbs stairs, that was just approved by the FDA. It costs about $30,000. They’ve got a lot of great stuff.
Elizabeth MacDonald: MAKER
That’s right. I’m a maker on this stock. I love Johnson & Johnson. Not just the wheelchair, they’re ramping up their R&D in biotech. They also have a really solid customer base. Their three biggest customers are the biggest drug distributors in the world, and that’s why I like the stock. I think it’s a good choice.
Mike Ozanian: MAKER
I’m a maker too. They have $8 billion in cash and when they take that cash and plug it into R&D, they’re going to average a return of 20 percent. That’s $1.6 billion in profits, right there. I love the company.
David Asman: Is there anything not to like about this company?
Vita Nelson: 13 percent into R&D, I think, is very substantial, and very worthwhile.
David Asman: Mike, final word. There are some concerns about sales overseas, you don’t see any problems there?
Mike Ozanian: You know what? There’s going to be some bumps in the road, but their long-term track record is they own over 20 percent on their shareholders money, consistently, year after year.
Stock Smarts: Sticking It to Stocks?
Are the Democratic presidential hopefuls trying to stick it to stocks by exaggerating the problems with the economy?
Gary Kaltbaum of Kaltbaum & Associates says the Democrats (search) are behind the curve on their negativism. He says manufacturing is getting better, services are getting better and we are going to see 5 percent growth in the economy. He’s not sure what data the Democrats are looking at to support their position on the economy. He says the loss of jobs we have seen is a lagging indicator: “Jobs always come after the economy gets better. We are dealing with corporations here who just went through some very tough times and its decision making time for them. They need to know that the economy is going to stay in good shape before they start adding jobs.” He predicts the jobs numbers will improve in the next 3 to 6 months.
Dagen McDowell of Fox Business News says the Democrats do have some ammunition with the jobs report out Friday that showed a loss of 93,000 jobs. She says the economy continues to shed jobs and that hurts the market.
Hilary Kramer of A&G Capital says the stock market is what you want to watch, and it keeps going up, so that means that no one is listening to the Democrats.
Jonathan Hoenig of Capitalistpig Asset Management says he’s not sure what the Democrats stand for besides hating George Bush and pitting the rich against the poor. “They believe that the rich get rich at the poor’s expense, and that’s just not true.”
Wayne Rogers of Wayne Rogers & Co says this economy is doing great and the Democrats have no issue besides the fact that the U.S. has found no weapons of mass destruction in Iraq, and they are not pressing that issue. He says he saw a poll to determine how popular a democratic presidential candidate Morgan Freeman (the actor who once played a president) would be, and he outpolled all the Democratic candidates.
Be$t Bets: Stocks to buy if you don’t believe the Dems
If you don’t think the economy is as bad as the Democrats say, then what are the stocks you should buy? Some members of the crew offered up some picks.
Jonathan says BUY: Four Seasons (FS)
Friday's close (9-5-03): $49.00
Jonathan says if the economy strengthens and the Democrats’ dire predictions don’t come to fruition this hotel chain should do well, and he’s considering buying the stock himself right now. Wayne says he loves the stock; it’s got a great chart, and the company does a good job operating its hotels. Gary agrees, and he likes their bathrobes. Hilary says she loves their beds, but couldn’t sleep if she owned the stock.
Hilary says BUY: ConAgra (CAG)
Friday's close (9-5-03): $21.75
Hilary says this is an undervalued consumer products company that pays a great dividend. She bought shares in CAG this week. Jonathan says he’s not sure how much upside this stock has. He says he would like the chart to be stronger, and he doesn’t see a real catalyst for strength right now.
Gary says BUY: Clear Channel (CCU)
Friday's close (9-5-03): $45.02
Gary says Clear Channel is a dominant force in radio and outdoor advertising, and he calls it a pure play on advertising, which he thinks will improve with the improving economy -- despite what the Democrats say. Wayne says the stock broke out on good volume, and he likes it. Jonathan says Gary’s “on to something” with CAG, and he likes the stock too.
Wayne says BUY: Intel (INTC)
Friday's close (9-5-03): $28.71
Wayne says Intel keeps raising its estimates for the full year, and he doesn’t think anything the Democrats say can hurt it. He calls it “a strong company in a strong industry,” and he likes the stock. Jonathan says it’s hard to hate a stock that’s been so strong, but he says, if the industry loses steam, Intel is the first to get hit, and he’s not a buyer here. Gary says INTC has had a good move and could pull back on any negative news. He’d buy if it pulled back about 5 percent.
Power Plan: Montana’$ Money
Joe Montana has made his mark on the football field, but can he score a touchdown on Wall Street? Dagen and Jonas came up with some funds that will keep the hall-of-famer in the green.
Jonas: Gateway Fund (GATEX)
Year-to-date: UP 8.8 percent
Minimum Investment: $1,000
Expenses: $9.70 for every $1,000 invested
Dagen: Vanguard Energy Fund (VGENX)
Year-to-date: UP 16.0 percent
Minimum Investment: $3,000
Expenses: $4.00 for every $1,000
Jonas, Jonathan and Wayne answered some of your questions.
We first took a look at the standing in the Cashin’ In Challenge. To find out who’s ahead, check out the website at: www.foxnews.com/challenge
Question: “I've heard that Canada will increase its spending on oil exploration. Does that make Calgary-based Pengrowth Energy (PGH) a buy?”
Wayne says Pengrowth is a well-positioned company that pays a good dividend every month, and he still owns it and still likes it.
Jonathan says networking stocks are hot, technology stocks are hot, single-digit stocks are hot, but they are not his cup of tea -- though when they get a bid, they often move 10 percent or 15 percent all at once. Jonas says if history is any guide, when stocks fall over 90 percent they almost be never come back.
Question: “Boeing (BA) has been climbing nearly every day. Do you know why?”
Jonas says there are a couple of reasons the stock is going up: one is that cyclicals are hot because the economy is coming back, the other is that this company is on the edge of getting a huge “pork-barrel” $20 billion project to build planes that fill up other planes in the air, but it is not a done deal. Jonathan says Boeing’s been a Dow laggard for a long, long time, and all of sudden the wind is at Boeing’s back. He calls Boeing one of the strongest elements of the Dow right now.