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; Tobin Smith, founder and chairman of ChangeWave Research; Scott Bleier, president of HybridInvestors.com; Gary Kaltbaum, president of Kaltbaum & Associates; and Rob Stein, Managing Partner of Astor Asset Management.
Again and again, December has been one of the best performing months for the market.
In fact since 1950, the Dow has been up -- on average -- 1.7 percent. If every month matched that kind of gain, we'd be higher by about 20-percent every year.
Rob thinks this will be a December to remember for the market. He said last December was terrible, but now the economy is hitting on all cylinders, more people are working, and the market’s momentum won’t be stopped.
Gary B. charted the Nasdaq’s movements over the past 2 months. He said the “Nas” has essentially just moved sideways and will probably stay between 1850 and 2000 for a while. But eventually, he believes it will break above 2000.
Tobin is bullish! He thinks President Bush will be reelected due to the Medicare legislation that was passed by Congress last week. He believes the market is figuring in a Bush victory and that the economic growth will stay with us.
Gary Kaltbaum said investors should be careful about turning very bullish right now. He explained that the market has had a great run. Also it is a forecaster of the future, and if the numbers don’t look good in the next six months, it will turn down. However, he said that things are in good shape right now and there is buying on every pullback. He thinks this will make stocks head higher in December.
Scott is cautious because everyone is so bullish. He predicted the following scenario: we’ll go above Dow 10,000 and Nasdaq 2,000, everybody’s going to get bullish, and then the market is going to get a real pullback
Rob Stein, one of the biggest bears ever on Fox, now loves stocks. He picked three stocks he thinks investors should buy right now. But would Scott, Tobin, and Gary K. agree?
First, Rob picked Dell Computer (DELL). He likes the stock because the laptop business is booming in Europe and Dell didn’t faltered during the recession. He thinks there is a lot of upside potential for this stock. (Dell closed on Friday at $34.57.) Scott has owned this stock since it was at $28. He conceded that it has not kept pace with the broad market, let alone the rest of the tech sector, and is the number one over-owned tech stock. But, he thinks Dell has more upside and thinks it will hit $40. Gary K. thinks the stock is just okay. He said Dell is the best in its industry, but it is over-owned. Also, it has to sell TVs to boost its numbers because the PC industry isn’t what it used to be. Toby owns and recommends Dell. He likes the stock and said that people who own a Dell computer would be more likely to buy a Dell TV.
Next, Rob chose Bank of America (BAC). He is bullish on this stock because it has strong financials, is buying FleetBoston (FBF), is diversified, and will benefit from an expanding economy. He thinks it will make new highs in the next six months. (Bank of America closed on Friday at $75.43.) Scott doesn’t like this stock due to the FleetBoston acquisition. He thinks it’s going to take time for the dust to settle and investors should wait until the two companies are firmly integrated. Tobin likes Bank of America. He said there are more acquisitions to come, which is the nature of the business. Also, the company doesn’t have a legacy of bad news following it like some other banks. On top of that, he thinks its dividend is going to keep growing. Gary K. is also bullish on Bank of America. He said that after the merger was announced, the stock fell. But that’s when insiders stepped in and bought a lot of shares. He believes it’s going to go higher from here. However, he thinks FleetBoston is a better buy because it is discounted.
Lastly, Rob picked Sirius Satellite Radio (SIRI). He thinks satellite radio is the next new thing. He believes this stock is poised to make a big move up because it’s very reasonably priced and has recurring revenue from subscribers. Also, it just made a deal to have its radios installed into DaimlerChrysler (DCX) vehicles. Rob explained that this is good for the stock because the people who buy cars from DaimlerChrysler will pay $12 for radio. Toby thinks Sirius will be an $8-10 stock by 2006. (Siruis closed on Friday at $2.08.) Gary K. isn’t thrilled with this stock because the company is losing money. He would rather own XM Satellite (XMSR), due to its stronger revenue growth. Scott also likes Sirius and added that it might not be a good stock to buy and hold, but it is great stock to trade.
Gary B. returned to answer your questions in another round of "Ask the Chartman!"
(If you any questions/comments for Gary B. or anyone on the show, please e-mail us at: firstname.lastname@example.org.)
Michelle from Denver wanted to know Gary’s opinion on General Electric (GE). He said it had a nice move up earlier in the year, but has gone sideways for the past 6 months. However, he thinks it will resume heading higher shortly. (General Electric closed at $28.67 on Friday.)
Next, Tom from Washington, DC asked about Intel (INTC). Gary said the problem with Intel is that it has performed too well. He advised to sell the stock. (Intel closed at $33.54 on Friday.)
Renee from New Jersey wanted Gary’s opinion on Microsoft (MSFT). He said the stock has had some recent setbacks, but it has formed a “bullish bowl” since early 2000. He highly endorsed the stock and said if he could only own one stock, this would be it. (Microsoft closed at $25.71 on Friday.)
Judy in Texas asked Gary to chart IBM (IBM). He said the stock has only moved sideways since gapping down in October, and this usually means it’s heading lower. (IBM closed at $90.54 on Friday.)
And finally, Frank in New York wanted Gary’s expertise on Amgen (AMGN). Gary said the stock made a monster run from October of last year until this July. He thinks right now it is having a natural pullback and would wait for it to clear $65 before buying. (Amgen closed at $57.62 on Friday.)
Rob: Dow and S&P 500 make new all-time highs within 18 months
Gary K.: Mutual Fund Scandal worsens BUT it does not bring down stocks
Gary B.: An Apple (AAPL) a day keeps the bears away; up 50 percent in a year
Scott: This is no test! ST Assembly Test Services (STTS) up 30 percent by summer
Cavuto on Business
Neil Cavuto was off this week -- Dagen McDowell hosted. She was joined by Gregg Hymowitz, founder of Entrust Capital; Ben Stein, author of Yes, You Can Time the Market!; Jim Rogers, president of JimRogers.com; Charles Payne, CEO of Wall Street Strategies; and Joe Piscopo, comedian and CEO of Avellino Productions.
Make or Break the Stock Market?
Dagen McDowell: Your plans this weekend could make or break our economy and your stocks! This is the start of the all important holiday shopping season. In fact, in the last six weeks of the year, retailers ring up nearly a third of all their sales for the entire year. Gregg, just how important is this weekend for stocks?
Gregg Hymowitz: It's crucial for the retail stocks Half of the profits for retail come in the fourth quarter. The consumer board was out recently saying that they think sales for the fourth quarter may be down actually 5 percent. The positive is that people are feeling a bit better about the economy and the job picture.
Jim Rogers: The market has already told me that this Christmas is going to be good. There's a lot of liquidity around, a lot of credit around. The economy is strong. So any retailer out there right now watching the show I say, don't worry. This Christmas is going to be a good one.
Joe Piscopo: I see it busier than ever. I was just at the Sands Casino in Atlantic City and the place was jammed.
Jim Rogers: Are people spending money or just looking?
Joe Piscopo: They're spending! It's busier than I've ever seen it actually.
Dagen McDowell: Isn't all this optimism going to be good for the market?
Ben Stein: The multiples of the market reflect that there's been optimism since last October. The market never really stopped being optimistic. The retail stocks have been really strong. It's true we have 6 percent unemployed, but the people who are employed are spending like mad.
Gregg Hymowitz: If retail sales don't come through this week, the stocks will come down materially.
Jim Rogers: I'm worried about the second half of 2004 and I'm very worried about 2005.
Ben Stein: The market is telling us now, and it could be wrong, but it's telling us that we're getting a self sustaining recovery now that doesn't need anymore fiscal stimulus from the Bush administration. Recoveries are typically seven or eight years. We could have a recovery that lasts into 2008 or 2009.
Joe Piscopo: I'm a Paramus Park kind of guy but I was in Rodeo Drive with a friend and I saw regular people, tourists, walking in and out of all these stores that are busier than ever. Also look at the movie box office. Cat in the Hat made $40 million. I can remember when a good film weekend was $12 million, maybe $18 million.
Dagen McDowell: Ok, Joe, these guys have been doing some shopping for you. Jim, what do you have for Joe?
Jim Rogers: I happen to be a director of a mutual fund and we just got a new fund manager. It sells at a discount and it has a huge tax loss. It's called the Zweig Fund (ZF). I also own it.
Gregg Hymowitz: I wasn't able to get to Rodeo Drive to get Joe a gift, but I own and would be buying a company called SBS Broadcasting (SBTV). It's a European broadcasting company. The media market in Europe is growing exponentially.
Ben Stein: I own and have always liked Viacom (VIA.B). It's a well run company. I've worked for them for a long time. They're very very cheap and stingy and I think the company has an unlimited future.
More for Your Money
Dagen McDowell: Is it time for all Americans to pay for their own healthcare so everyone can get more for their money? Jim Rogers says companies should stop offering health care benefits and the government needs to stop trying to find ways to cover all Americans. Jim, health benefits are as American as apple pie. Is this really a good idea?
Jim Rogers: First of all, they've only been around for fifty years. Whenever something is free, it's mis-used and abused and people take as much as they can get. That causes usage to go higher and prices to go higher. We have to get personal responsibility so that we don't have so much usage. That way prices can go down and we can all afford insurance. If you think it's expensive now, wait till it's free.
Gregg Hymowitz: That's the Christmas spirit!. The 45 million people who cannot afford it will no longer get health care because Jim wants health care to be cheaper. The fact of the matter is all this talk about having health care in private hands is absolutely wrong. Private insurance has administrative costs of about 15 percent. The government spends 96 cents of every dollar on health care costs. So you're just plain wrong that the private sector can do it cheaper.
Dagen McDowell: Ben, would Jim's plan work?
Ben Stein: Jim's plan is a great idea and makes total rational sense. The problem is there are an awful lot of people who can't afford to pay their own health care. But his basic theory that when something is free it's over-used is completely correct. Third party paying has been a catastrophe, second perhaps to medical malpractice lawsuits. The Medicare Bill that Congress has passed is a catastrophe in the long run.
Charles Payne: I think as far as employers are concerned, they shouldn't have to pay. A lot of large corporations have really become health care providers, the big auto makers being prime examples. Also, employees should understand that they are already paying for their health care. In regards to these benefits that get dangled in front of employees, they should be able to say, keep my benefits but give me more money for what I do and I'll go out and pay for health care myself. For those people who cannot pay for health care themselves, the government should step in.
Dagen McDowell: Joe, what about the opposite extreme, just nationalizing healthcare?
Joe Piscopo: For the amount of taxes that we pay in this country, the very least we can get out of it is free healthcare.
Ben Stein: It's not free. There's no such thing as free anything.
Jim Rogers: Healthcare is bankrupting this country. The U.S. spends 15 percent of its gross national product on healthcare.
Gregg Hymowitz: The government should use its influence and leverage to drive costs down. But in the law that was just passed it is expressly prohibited from doing that.
Ben Stein: That's because we do not want the drug company pipeline of new, life-saving drugs to dry up. Drug companies are the number one savers of lives in this country. There's no reason to kill the goose who lays the golden egg.
Charles Payne: If we keep short changing the drug companies, we're never going to get cures.
Head to Head
Dagen McDowell: Lots of headlines and just as many scandals! But is this actually the best time ever to buy mutual funds? Charles, you say you're better off with your money in a mattress than in a mutual fund?
Charles Payne: Ultimately the scandals will go away but there are two other things to keep in mind. The historical underperformance of mutual fund managers should discourage investors. (Over the past 10 years, mutual funds have a 9 percent annualized return vs. a 13 percent annulized return for the Dow Industrials.) But more importantly, the very nature of mutual funds should too. You do all your analytical work and you love this one company that on a scale of 1-10 you think is a 12. And then there's this another company that on a scale of 1-10 you think is a 3, but you own the same amount of shares of both of them. You're diversifying for diversification sake but you're not playing to win.
Dagen McDowell: But Charles, diversifying also means you don't lose your shirt.
Charles Payne: That's not why I invest in the market. I invest in the market to make money.
Dagen McDowell: But a lot of people want to make sure that they don't lose all their money like they did over the previous three years. Mutual funds are still the cheapest way to get a broad portfolio.
Charles Payne: In football there's a time when a team does really well and they go into what's called a prevent defense. They're not playing to win. They're playing not to lose. Essentially, that's what a mutual fund is.
Dagen McDowell: The average American does not have the time or the patience to go out and pick individual stocks.
Charles Payne: The only thing I like about mutual funds is that it has introduced the average American to the stock market.
Dagen McDowell: If you're in a 401k plan, you don't have a choice. You can only buy mutual funds. And there are plenty of great ones out there.
Charles Payne: You're talking about finding a good stock. It's even harder finding a good mutual fund.
Dagen McDowell: That is not true. There are scores of fabulous mutual funds managers who are ethical out there. Also, with this fund scandal going on, it's never been a better time to buy mutual funds because everybody is fessing up to their sins.
Charles Payne: But the ultimate sin is that they don't play to win. If there's a stock that you know is going to do very well and you really like it, you should buy that stock. You shouldn't buy that and then an equal amount of stock that you really don't like.
Dagen McDowell: And then watch it blow up in your face?
Charles Payne: You can be diversified but you don't need 50 stocks of one sector.
Dagen McDowell: But if you only have $5,000 or $10, 000 to invest, through mutual funds you can buy U.S. stocks, international stocks and bonds.
Charles Payne: You're telling someone who doesn't have a lot of money to be so diversified that they'll never make a lot of money. So they're just really going in circles.
FOX on the Spot
Charles Payne: Jobs jump-start stocks! Buy Robert Half (RHI). Next Friday's employment show more jobs were created than expected in November.
Ben Stein: Best safe bet: Buy 2-year bonds! Interest rates for longer term treasuries are too low to buy right now.
Jim Rogers: New Bush plan will pump up market! The President's plan to stop taxing savings will help economy and market.
Gregg Hymowitz: President Bush will not cut taxes again. He will have to raise them to offset budget deficit.
Joe Piscopo: Saddam and Usama will be found in 2004!
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:
David Asman: A very big deal for cell phones! Now you can change your wireless service and keep your old cell phone number! And that could mean big business for some phone companies! Dennis, first to you. How do all of these changes affect the markets and companies?
Dennis Kneale, managing editor: Well, you know, I just began the process of ending an abusive, eight-year relationship with my cell carrier; AT&T Wireless (AWE). The stock symbol is A-W-E, but it ought to be S-S-B for “sucks so bad.” Dropped calls, fast busies, I mean, I am sick of it. They offered me $150 the other night, not to switch and to go re-up with them, and I turned them down. I told them on the phone, “do you know why? You just called my cell phone and it took you five calls to get a call through because you guys have lousy coverage. I’m going to Verizon (VZ).” Now that’s a stock you should buy.
David Asman: Verizon’s the good one, not AT&T. Scott, what do you like, and what do you dislike?
Scott Woolley, senior editor: Well, the one other company that people like right now is Nextel Communications (NXTL). They like it for two reasons. It’s got pretty good coverage, but it has this walky-talky function that no one can duplicate. Verizon said they were going to duplicate it, AT&T said they were going to duplicate it.
David Asman: Of course it’s annoying as all hell.
Scott Woolley: Well, that’s true. But if you’ve got it, you love it. Wireless stocks have destroyed value. For 20 years people have been losing money in cell stocks.
David Asman: So, Nextel good, which one is bad?
Scott Woolley: Sprint PCS (PCS) is likely to be a loser. They’ve got a weak parent company, they’re small, they’re losing money.
David Asman: They have great commercials, but that’s not going to make it for them.
Scott Woolley: Exactly.
David Asman: Mike, you don’t like anything.
Mike Ozanian, senior editor: But the economics of this industry are great for the consumer, great for people like Dennis, but they’re terrible for companies and shareholders. It’s a commodity business. That’s why if you look at a company like Verizon, for instance, it has $30 billion in debt, now, that it has to pay over the next five years. That’s more money than the company has made over the last four years combined.
David Asman: All right. Victoria, you’re kind of pessimistic too, but you think Verizon’s hot, right?
Victoria Murphy, senior reporter: Yeah. Well, I think Verizon’s the winner here because they’ve got the best reputation, but it’s a game you don’t want to be paying in the first place. I’m in a good relationship with Verizon, not an abusive one like Dennis. This week I was feeling a little empowered as a consumer, and I called Verizon and said, “you know, I understand I can switch now, and keep my number.” And they said “well, we don’t want you to switch, you’re a good customer, why don’t we knock $5 off your monthly statement?” Well, OK, that’s great for me, but I think it’s lousy for shareholders.
David Asman: So, Dennis, the point is that this might be good for customers, but it doesn’t add up to a lot for shareholders.
Dennis Kneale: I’ve got to tell you that I have to disagree with Victoria here, because that extra $5 a month that she was given, got the company $700 a year in her continued customer relationship. That’s a really good investment. Secondly, as much as Mike doesn’t like the industry, this industry is in consolidation. We’re down to a couple of key, big players. And they’re stocks worth owning. Wireless is the future.
Makers & Breakers
• Toll Brothers (TOL)
Sam Lieber, manager of the Alpine US Real Estate Equity Fund: MAKER
Toll Brothers is a classic company that Alpine likes, companies which have cyclical or secular strengths. They are the biggest builders of luxury homes in the US, and we think that’s a great sector right now. With lower tax rates and a strong stock market, people have money to buy these homes.
David Asman: It’s trading at around it’s 52-week high (Friday’s close: $41.41; 52-week high: $41.94). How high will it go?
Sam Lieber: I think there’s another 20 percent in the stock, so $48-50.
Jim Michaels: MAKER
This stock is not really a ‘hidden jewel.’ It’s quintupled in the last few years, it’s doubled in the last year. However, the company’s got the wind at its back, there’s probably some more in this stock.
Bill Baldwin, editor: MAKER
I think this is a maker for your portfolio because I think it’s only a matter of time before they make the four-car garage a standard. They’ll be there. They’ll raise their dividend when that happens.
• Gaylord Entertainment (GET)
Sam Lieber: MAKER
They have a lot of stuff; Bass Pro Shops, the Grand Ole Opry, Opryland. But the key to this company is that they are in the convention/resort business. As the economy strengthens and companies start spending more money, we think that they’re going to pick up business. More companies will then have large conventions. They’ve got three of them now, they’ll build a couple of more over time.
David Asman: Also trading around its 52-week high, (Friday’s close: $30.09; 52-week high: $30.37), how much higher do you think it could go?
Sam Lieber: I think $36-38.
Bill Baldwin: BREAKER
Well, if you want a pure play in fishing lures, country western songs and vacation timeshares, this is good.
David Asman: Hey, that sounds like paradise to me.
Bill Baldwin: The only way to look at it is that it’s a junk pile. It’s losing money, I wouldn’t want to own it.
Jim Michaels: BREAKER
I can’t buy a stock where I don’t see any profits, where I don’t see any cash flow strength. I wouldn’t touch it.
Sam Lieber: And that’s why it’s been cheap. And the reason is that as they get this new Dallas property on-line, they’re all of a sudden going to go from having to feed this thing to develop it to have significant cash flow growth, we think, at the end of the year and going into ’05.
David Asman: But even though it’s already at its 52-week high? You think it’s still got that room to move?
Sam Lieber: The stock is down from where it was 2-3 years ago.
It’s the home stretch for stocks in 2003! Will December bring the biggest rally yet?
Joe Battipaglia of Ryan, Beck & Co. says this has been the best year in three years, and he believes investors have been waiting for this opportunity. He thinks interests rates (search) are going to stay where they are, and with the economy growing at such a rapid pace, he thinks people are going to want to be positioned in the stock market for next year. He says they will do their buying in December. He expects big gains in the market this December.
Steve Doocy of FOX & Friends contrasts this December with last year when we were experiencing the “dark days before the war.” He points out that people are back in the malls and spending freely, and that should help to support gains in the market through the end of this year. He says that unlike the “bubble period” several years ago, the gains in stocks now seem more realistic, and that should bring confidence back into the market as well.
Jonas Max Ferris of Maxfunds.com says he underestimated the strength of the American economy and the market has come a long way in response to that strength, but he thinks all the good news is already priced in, and we won’t see big gains in December
Mike Norman of The Economic Contrarian Update says last December was actually a better time to get into the market than this December because there was so much fear leading up to the war and stocks were cheaper. He agrees with Jonas that all the great economic news we have been hearing about is already priced into the market, and he does not think we will see a big December for stocks this year. In fact, he is expecting the market to pull back this month.
Jonathan Hoenig of Capitalistpig Asset Management says he’s still not betting on the U.S. stock market. He’s buying commodities like gold in the U.S., but the only stocks he’s buying right now are foreign. He’s worried about the weak U.S. dollar, so he does not see a big rally for the U.S. stock market this December.
Best Bet$: Steve’s Stocks
When he’s not hosting FOX & Friends, Steve Doocy’s watching the stock market. We took a look at three of the stocks he’s betting on.
Steve’s Stock: Panera Bread (PNRA)
52-week high: $47.79
52-week low: $24.55
Friday's close (11-28-03): $38.91
Steve bought this recently after a visit to the store that really impressed him. He says the food was great and the line was out the door. Joe Battipaglia says the rise for this stock is over. He says the price is too high now. Jonathan says carbohydrates are out because so many people are on low carb diets, and he thinks this stock will be hurt by that growing trend. Jonas says to stay away from these fad food stocks that start out as rapid growth stories and later disappoint.
Steve’s Stock: General Electric (GE)
52-week high: $32.42
52-week low: $21.30
Friday's close (11-28-03): $28.67
Steve has owned this stock since he worked for the company years ago. He says it’s one of those big companies that tends to move slowly and steadily upward, though it is way down from its all-time high of $60 back in 2000, but he still likes it. Jonathan says the sheen is off GE. He is no longer betting against the stock as he was a couple of years ago, but he says it’s not the index favorite that it once was, and he wouldn’t bet on it either. Jonas says GE is a relatively safe long-term bet. He points out that if GE collapses, all stocks will collapse. Joe likes GE because he says the company is going to turn its individual assets into equity and create more value for shareholders.
Steve’s Stock: Intel (INTC)
52-week high: $34.51
52-week low: $14.88
Friday's close (11-28-03): $33.54
Steve says he’s been betting on this stock for ten years. He still likes it. Joe says this is an easy call: Intel’s a low-cost, volume producer with leading technology and lots of money -- there’s no reason not to own this stock. Jonathan says he prefers newer ideas than Intel. It’s not his favorite choice for new money. Jonas says he’d be worried about this stock in the short term because it’s a little pricey right now, but he thinks it’s a great long-term bet for those with a ten-year time horizon.
Stock of the Week
Joe says Activision (ATVI) is the stock to buy Monday. Mike says he’s nuts!
Joe says video games will be extremely hot this quarter and Activision has new games on the way, and he thinks the stock will benefit next week now that the holiday shopping season is officially underway. Mike says this company has no debt and has a decent amount of cash so it looks good on the surface, but he says he’s worried about the fact that the company has recently cancelled some game projects for next year and has postponed the release of a new edition of one of its most popular games. He says the stock is already expensive, and he doesn’t see it moving higher next week.
We’ll post the week’s return here next Saturday.
Last Week’s Stock of the Week
Jonathan said Aberdeen Asia-Pacific Prime Income Fund (FAX) was the stock to own last week.
Aberdeen Asia-Pacific Prime Income Fund gained 1.8 percent last week.
Cashin’ In Challenge
To find out who’s ahead in the $10,000 “Cashin’ In Challenge”, check out the Web site at: www.foxnews.com/challenge
Joe, Jonathan and Mike answered some of your questions.
Question: “I bought Paychex (PAYX) at $25. It’s trading at $38. When should I sell?”
Jonathan says let your winners run. He says put stop loss orders under the stock at $36, $33 and maybe $28 and let the market take you out if it falls.
Question: “Does Limited Brands (LTD) have upside potential at these levels?”
Joe says there’s more profit to be had with this stock. He says the company has got its focus right for the first time in a long time. Mike says higher tariffs on the bras and panties made outside the U.S. will hurt this company’s profit margins because so much of its profit depends on its Victoria’s Secret stores. Jonathan says this is not his favorite stock in what is otherwise a strong sector. He prefers The Gap (GPS), TJX (TJX), and Ann Taylor (ANN).
Question: “I have $40,000 under my mattress that I would like to invest in the market. I am a new investor; what should I buy?”
Mike says he thinks the economy is going to slow down, so he would invest in some bond funds and utilities. Jonathan says he would put the money into the market slowly – over six to ten months. He says he would be looking to buy gold, overseas stocks, and commodity related plays – investments that are related to a falling dollar. Joe says he would put the money in a small and a mid cap fund because it gives you broad diversification in stocks that generally outperform over the long term.