Cavuto on Business

Recap of March 16: $tay With Stocks?

Neil Cavuto was joined by Jim Rogers, President of; Alexandra Lebenthal, President of Lebenthal & Company; Molly Falconer, our own business correspondent; Fox’s Senior Judicial Analyst Judge Andrew Napolitano; and Michael Ratner, Vice President of the Center for Constitutional Rights.

Bulls Still Running?

A very choppy and sloppy week for the market. Stocks were all over the place — up, down and sideways. This after four weeks of strong gains for the Dow Industrials, which rose 828 points between February 11th to March 8th.

Neil asked the panel if the market will continue going higher?

Jim Rogers says market volatility is normal. He thinks the market will move higher in the near term, then turn lower the second half of the year. He says raw materials and Australian stocks are the place to put your money in right now.

Alexandra Lebenthal thinks the market will stay in the same range in the near term due to a slow economic recovery. She likes financial services and home improvement stocks.

Judge Napolitano thinks the market and economy are rebounding and will continue to do so thanks to President Bush’s tax cuts.

More For Your Money: $tay With Stocks?

Nell Mitchell of Texas emailed FNC saying the recent big gains and big losses on Wall Street has her wanting to get out of the stock market altogether. Neil asked the panel if Nell should bail out or not?

Alexandra says Nell should stay in the market. She says investing is not about short-term, it’s about planning for your life and for your goals. She recommends Nell to invest in both stocks and bonds.

Judge Napolitano says history tells investors to be patient and to have self-discipline.

Neil pointed out that the average annual return for the S&P 500 index is 12% over the past 20 years, while the 10-year bond is 7% and money market accounts is 4% for the same period.

Jim says Nell should get her money out of the market and that investors should not get into the market until they’ve done ALL their homework on the stocks they want to buy.

Head to Head: Detainee Debate

Al-Qaeda and Taliban Detainees in Guatanamo Bay: Do they have it too good on your dime?

Michael Ratner, Vice President of the Center for Constitutional Rights, thinks they need to be treated better. He’s part of a group trying to get the detainees more rights by re-classifying them as prisoners of war.

Neil says yes the detainees are just that and are being treated just fine. They've got medical attention, shelter, and praying privileges.

Fox On The Spot

Jim Rogers says Jack Welch's reputation will not be damaged by the current divorce "scandal". The real test will come as more light is shed on General Electric’s (GE) accounting practices.

Alexandra says if the Hewlett-Packard (HWP)/Compaq (CPQ) deal is voted down by shareholders this week, the media will bring down HP’s CEO Carly Fiorina as fast they built her up.

Judge Napolitano says individual partners at Arthur Andersen will run to the Justice Department and will give testimony and evidence to save themselves from the Enron (ENE) scandal.

Molly says turmoil overseas will cause investors to put their money in safety stocks like Coca-Cola (KO) and HJ Heinz (HNZ).

Neil predicts the fighting on Capitol Hill will heat up over the rejection of Bush's Judge choice and how to finance the war on terror. As a result, nothing will get done and the markets will love it!