Neil Cavuto was joined by Gregg Hymowitz, founder of Entrust Capital; Jim Rogers, president of JimRogers.com; retired U.S. Army Major General Paul Vallely; Ben Stein, economist and former Nixon speechwriter, and Molly de Ramel, FOX News Business correspondent.
Who’s a Bigger Threat Right Now: Hussein, or Bin Laden?
Worries of terror heating up after another tape of Usama bin Laden turns up, causing stocks to turn down. And reminding investors and the world that Saddam Hussein is not the only bad guy out there. But who's more dangerous to America and your financial well being right now?
General Vallely: They're both dangerous and they work together. All these terrorists are linked and they're all a priority for us to capture or kill.
Jim Rogers: Usama bin Laden is much more dangerous because he's a cult figure throughout the muslim world right now. But bin Laden hates Hussein. So I would say if you had to choose, you should get rid of Usama bin Laden first.
Ben Stein: I would add to the list the president of North Korea, Kim Jong-il. We need to get rid of all of them and the United States has vast resources to defend ourselves against them all.
Gregg Hymowitz: If we do get rid of bin Laden and Hussein, how are we going to stop all the other countries that don't like the U.S. from coming after us. In order to get that, in order to get market stability we need, we have to engage these other countries in diplomacy. We have to educate them.
Ben Stein: Usama bin Laden cannot be dealt with by diplomacy. He and other terrorists hate us for being free.
General Vallely: If we to go to war with Iraq, it is going to be a quick 30-day war. We're going to be in Baghdad in five to seven days.
More For Your Money: Bet on America!
Neil Cavuto: We heard retired Army Major General Paul Vallely tell us a possible war with Iraq would be quick. If he's right, and hopefully he is, what stocks will get you more for your money?
Gregg Hymowitz: If this is a quick war, oil prices will fall and the equity markets will rally. interest rates will also go a little higher on concerns that the economy will get back on its feet. I think you will see a relief rally if it's really quick. The big question is what happens after in the war. If we can get a new peaceful government in Iraq in 60-90 days then I do think we'll see some kind of rally.
Jim Rogers: Conventional wisdom says the war will be a quick one. But I only consider fighting Iraq the "battle." That's not the war, because then we have to worry about the rest of the world. If there is a big rally from winning the battle in Iraq, I would sell in that rally in a big way.
Molly de Ramel: I agree with Jim, this is going to be a long war. After we take over the oil fields we will still have attacks on our installations there.
Neil Cavuto: If it is a quick war, what do you buy?
Gregg Hymowitz: I own and would recommend buying Pacific, Gas & Electric (PCG). They're roughly seven times earnings and a cheap company. Once the economy gets better I think this stock will improve.
Ben Stein: I'd buy Cohen & Steers (ICF). It’s a Real Estate Investment Fund which I own and like because of its high yield and benefit of an ongoing housing boom.
Jim Rogers: If the war is quick and stocks rally, I would sell into that rally. I would also sell oil which has run up 40 percent since November.
FOX on the Spot
Jim: Bush's plan to tax consumption instead of income will save the economy!
Gregg: Stocks stay stuck in a rut until we attack Iraq.
Ben: Stocks rebound during war, but not for long since profits have not rebound.
Molly: France, Germany and Russia change their tune after Iraq war. They will beg us to be involved in post-war Iraq.
General Vallely: No time limit on U.S. presence in Iraq after war is over. We will be there as long as it takes to install and stable parliamentary type of democratic government.
Neil: War will be avoided at the last minute, when Hussein steps down and leaves Iraq.