Cavuto on Business

Recap of March 23: Will Greenspan Ruin the Market?

Neil Cavuto was joined by Republican Strategist Ann Coulter; Jim Rogers, President of; Mike Norman, Publisher of the Economic Contrarian Update; and Charles Lemonides, chief investment officer of ValueWorks.

Will Greenspan Ruin the Market?

Last week, the Federal Reserve Bank changed its bias for interest rates to "neutral." Neil asked his guests if they think Federal Reserve Chairman Alan Greenspan will hike rates sooner or later and what investors should do if interest rates do rise?

Jim Rogers thinks rates will rise sooner than later. If rates do rise, he recommends selling General Electric (GE) & IBM (IBM). Mike Norman says Greenspan has already ruined the economy by pumping cash into an overbuilt economy and market. He recommends buying gold stocks and U.S. exporters if rates rise. Charles Lemonides says rates should go up 1.5% and recommends buying Walt Disney (DIS) and News Corp (NWS), the parent company of FNC. Ann Coulter says Bush should cut taxes more to help the economy and market rebound.

Spring Cleaning for Stocks

Our guests told investors what stocks they should toss out and what stocks to add to their portfolios. Jim Rogers says sell Microsoft (MSFT) and Coca-Cola (KO), and buy Chiquita Brands (CQB). Mike Norman says to sell Centex Corp (CTX), Pulte Homes (PHM) and Toll Brothers (TOL), and to buy U.S. Steel Stocks. Charles Lemonides says to sell General Electric (GE), SBC Communications (SBC) and Verizon (VZ), and to buy General Motors (GM) and Washington Mutual (WM). Ann says President Bush should do a little spring cleaning with his cabinet by firing Transportation Secretary, Norman Mineta, because she thinks he is ruining the airline industry.

Small vs. Big Investor

Who are smarter and more level headed when it comes to investing: individual investors or the pros? Bill Wolman, senior economist at BusinessWeek, says the big institutional investors make better investment decisions and have a better record for returns than individual investors do. Neil says the so-called big investors bail out at the first sign of trouble and it's the small investors who hang tough and keep the market from tanking.

FOX on the Spot

Mike Norman predicts stocks will sink as rates rise and the dollar dips.

Charles Lemonides predicts the stock market will be stagnant due to a bumpy economy.

Jim Rogers thinks U.S. companies will lose business in Latin America to the European Union, which is aggressively courting countries south of our border.

Ann Coulter thinks that Transportation Secretary Norman Mineta should be ousted.

Neil says the campaign finance reform bill will not change anything and that big money will always be in politics.