Recap of March 30: Taxes Help Stocks?

Neil Cavuto was joined by John Kasich, host of Heroes with John Kasich, and former House Budget Chief and presidential candidate; Jim Rogers, president of JimRogers.com; Alexandra Lebenthal, president of Lebenthal & Co.; and Gerri Willis, senior financial correspondent with SmartMoney.

Taxes Help Stocks?

April 15th — the day itself rings in infamy. But as far as the stock market is concerned, it's a good day. Over the last 50 years, the average gain for the Dow in April has been 2 percent. Doesn't seem like much, but that's the best performance of all the months in that time.  Many think investors hold off making financial decisions until they file their taxes. Will history repeat itself?

Jim Rogers says it’s possible. But if you do buy stocks now, you might to "sell in May and go away." Alexandra Lebenthal says past trends may not apply this year because of a weak economy. Gerri Willis doesn’t know where the market will go short term. She says to invest consistently every month to make money. John Kasich says cutting taxes helps the market and the economy. We should have cut taxes sooner and deeper last year.

The average tax refund so far this year is $2004.00. Where could investors put it for quick return? Alexandra Lebenthal thinks investors should put it in energy stocks. Gerri Willis suggests Buffalo Small Cap Fund (BUFSX), which closes to new investors on April 15th.
  
Stocks For Life!

Wayne Schwab of Choctaw, Oklahoma emailed us asking for long term advice to help get more for his money.  He writes, "I am investing for my future and would like to hear about which stocks you would recommend for a 20-year investment horizon."  Here’s what our panel suggests:

Jim Rogers says to invest in UniSource Energy (UNS) and Rice Farms.
Alexandra Lebenthal likes tax deferred plans (IRA’s & 529’s).
Gerri Willis likes Corinthian Colleges (COCO), Advent Software (ADVS), and SICOR (SCRI).
John Kasich says, in the long run, private market performs better than Social Security.

Kill Death Tax?   

Under the current plan, the death tax will keep going lower, but after it ticks down to nothing it comes back bigger than ever. Neil says death to the death tax! But Vermont Congressman Bernie Sanders says not so fast. The Congressman thinks it’s unfair to cut taxes that benefit the richest 2% of the population. Neil thinks it's essentially robbing from the grave.

FOX on the spot

Jim predicts Time Warner is not okay. Mega merger is not working, and the company may spinoff AOL.

Alexandra thinks Paul Volcker will take over ailing Arthur Andersen.

Gerri says to lock in your mortgage rates now! Rates are expected to rise.

John Kasich predicts when Greenspan retires, Neil makes short list for new Fed Chief!

Neil predicts that first quarter earnings will look pretty good. Less confessions from companies is a good sign.