Charles Payne: The commodities market has been very hot, but it isn't for the faint of heart. Unlike the stock market, you could lose more than you put up to play. One of the best ways to learn about that market is to read Jim Roger's book “Hot Commodities,” and do some paper trading. There are tons of websites, including Titan Commodities, that have nice execution platforms. Good luck, and I would buy and sell equities only.
Question: My local drugstore is already stocking Halloween candy, and I find it amazing that Hershey(HSY) still keeps rolling out great new treats as well as the old classics. Is Hershey's still a 'buy?' — Kristina (Oklahoma City, OK)
Charles Payne: I like Hershey's. I think they have a solid market niche, the business is recession-proof and inflation-proof. In fact, they could make the smallest price increases to move the income statement to the bottom line. There have been some cost pressures from higher cocoa prices and such, but I think it's a great long-term investment.
Question: I can't believe this, but I am already getting ready to buy airline tickets for the holiday season. With oil prices dropping, should i buy tickets now, or wait another month or so and see if prices fall further? — John (Madison, CT)
Charles Payne: Airline ticket prices are interesting; they have been going up as fast as I can ever remember. The industry is notorious for airfare wars that leave no winner. The airline who seems to be smarter this time around, Southwest Airlines (the pioneer in the no-frills discount space), has raised prices four times this year. I don't think they will let lower fuel cost bring down prices, alas. Buy the tickets now while you can get deep discounts.
Question: What's the future of satellite radio? Sirius (SIRI) and XM (XMSI)? It's been almost a year since Howard Stern's show launched, and I was just wondering if the satellite companies received the exposure growth they had hoped for. Thanks — John (Bowie, MD)
Charles Payne: I think there is a place for satellite radio, but it falls between the success of satellite television and satellite phones. The latter is a colossal bust while the former an incredible success. Stern isn't pulling them the way everyone thought, and the cost to set him up along with other programming is a huge hurdle toward profitability. There is a lot of scuttlebutt about a merger of the two companies — that will buy some time — but right now I think its only going to be a niche player at best. Also, don't forget about competitive new technology, like iPod kits that will be available in most cars by next year. These stocks, once moon-shots, will not go orbital again, at least not for a long time (there would be a pop if they merged, and yes, I would sell into such a pop).
Charles Payne is the founder and CEO of www.wstreet.com and appears regularly on FNC's Cost of Freedom Business Block.
Charles Payne is the host of Making Money with Charles Payne (weekdays 6-7 PM/ET).