Neil was joined by Jim Rogers, president of JimRogers.com; Brian Finnerty, senior vice president of Melhado, Flynn & Associates; Tom Dorsey, president of Dorsey, Wright & Associates; and Alexandra Lebenthal, president & CEO of Lebenthal & Company.
The Dow’s intra-day point swing hit a record high the past month. Hard to stomach for some, but some say this kind of action leads to a more stable bull market.
Jim says the volatility usually means it is a shift in direction. He thinks the market is near a bottom at least for a while.
Brian says wild swings are a sign of market bottom, because of the tug of war between buyers and sellers who are trying to guess which direction stocks will go. He also says his analysis of the VIX Volatility Index indicates the market may have recently hit a bottom. Alexandra sees some sign of nearing a bottom, but thinks the volatility will continue for several months.
Tom says the market’s volatility is nothing new and that it was much higher in 2000 on a percentage basis.
Neil asked his guests what stocks they think will win during these wild swings in the market:
Jim likes ENI (E).
Brian recommends Anheuser-Busch (BUD).
Tom likes Apollo Group (APOL). Each guest owns the stock they recommended.
More for Your Money: The New Leaders!
Neil says he’s sick and tired of all the Cisco talk on Wall Street! Like all the hype about if Cisco Systems’ earnings would signal a tech turnaround and a market rebound. He thinks the sooner we all get over Cisco, the sooner we all will get ‘more for our money.’
Tom agrees, and says if a person is still hanging on to Cisco (CSCO), it will take 13 years of 13% annual returns to get back to $67 a share. He recommends selling the stock and looking for new companies with good growth, like biotech firm Neurocrine Biosciences (NBIX).
Jim agrees with Tom, forget about Cisco! Jim’s new leader investment is Raw Materials like sugar or non-gold metals.
Brian says blue chip stocks will be new market leaders and recommends buying Diamonds Trust (DIA) which basically tracks Dow stocks.
Alexandra likes tax free municipal bonds and elder care stocks.
Head-to-Head: No Magic Bullet?
This Wednesday is August 14 -- the official date CEOs must begin personally signing off on their companies financial reports. Neil says the day and the documents mean nothing and will not be a magic bullet to save the market.
Ellen Ratner, Washington bureau chief for Talkers magazine says it will help cleaning up Wall Street and rebuild investor confidence
FOX on the Spot
Jim says Brazil bailout will fail and will not help U.S. banks & stock market!
Brian thinks a late summer rally lasts through the fall!
Tom predicts Martha Stewart will plead the 5th!
Alexandra says the CEO sign-off deadline and the Bush economic summit will have no effect on the market!
Neil says earnings mean more to the market than the August 14 CEO sign-off deadline!