Neil Cavuto was joined by Jim Rogers, president of JimRogers.com; Alexandra Lebenthal, president & CEO of Lebenthal & Company; Gregg Hymowitz, founder of Entrust Capital and former New York Senator Alfonse D'Amato.
The Republicans may have won control of Congress, but now the real challenge begins: the challenge to revive this wobbly economy and stock market of ours. How can they do it, and what is at stake if they do not?
Jim says the government needs to cut spending and reduce the federal debt. He’s worried that the deficit is running out of control and will eventually hurt economy and market. One stock he thinks will benefit from GOP policies is the Materials Select Sector (XLB). He owns it.
Gregg thinks the government needs to pass more investment tax cuts to help the market and economy. He recommends stopping the double taxation on dividends. Gregg thinks Pfizer (PFE) will benefit from GOP policies. He owns it.
Alexandra says the President needs to stimulate the economy and needs to find an honest SEC Chairman ASAP to replace Harvey Pitt, but she thinks Republicans will be more focused on war than domestic issues.
Senator D'Amato says President Bush and the Republicans are doing a good job on the economy and on the war on terror. He says proof of this can be seen in the historic mid-term election victory and the unanimous passing of the U.N. Resolution on Iraq.
Dow: Dem Dagger?
Is the real reason the Republicans won control of the Congress because the Dow jumped nearly 20 percent the month before the election? Did that make investors feel good enough about their wallets to lead the President's party to victory last Tuesday?
Gregg says possibly, but not as much as the President’s ability to turn the campaign focus on the ‘war on terror” rather than the ‘weak economy.’
Jim and Alexandra do not think the market’s month long rally helped Republicans win votes.
Senator D'Amato said if you want to look at something that really made the difference, look at the much publicized Paul Wellstone memorial in Minnesota. He said it looked more like a political pep rally and turned off voters. He thinks it made an impact in close races like Missouri and Minnesota.
Head to Head
Neil Cavuto says the best way to goose this economy is to cut taxes. That's why the GOP should use their newfound majority to make Bush's tax cuts permanent! Gene Sperling, Former Economic Advisor to President Clinton says temporary tax cuts should be given to middle class to help stimulate economy, but taxes for wealthy should be suspended.
FOX on the Spot
Gregg predicts President Bush will fire Treasury Secretary Paul O'Neill & economic adviser Lawrence Lindsey, and push for investment tax cuts.
Al D'Amato sees Hillary Rodham Clinton will be the vice presidential candidate for Democrats in ’04 and the presidential Democrat nominee in ’08.
Jim says Austrian stocks will beat European Union neighbors for the next decade. So buy now!
Alexandra thinks there’s more mess for Vivendi's ex-CEO Jean Messier.
Neil thinks Republicans will move quickly to push making those tax cuts permanent!