Neil Cavuto was joined by Jim Rogers, president of JimRogers.com; Gregg Hymowitz, founder of Entrust Capital; Meredith Whitney, portfolio manager at Circle-T Partners and Price Headley, investment strategist at BigTrends.com.
CEOs vs. Terrorists
What's more important: Trying to put Martha Stewart in prison or Usama bin Laden in a grave? We’re pretty sure most of you think getting Usama is the clear priority, not just for our country but for our bottom-lines too. But does Wall Street think that way too?
Jim says if we get bin Laden the markets will rally for at least a month, but unless you can end the war, these things are just smaller diversions.
Gregg agrees with Jim. He thinks that finding Usama will help the markets. But right now, he doesn’t think the markets really care if Martha Stewart gets indicted at all.
Meredith says the biggest risk on top of the war are the elections which are going to cause market mayhem targeting big officials like Citigroup’s Sandy Weill, and any other political affiliate that is going to bring the market down.
Price agrees with Meredith. He thinks there will be a lot of back and forth political ‘cat-clawing’ going on. Right now he’s selling stocks, but he’s says get ready in mid-October to the mid-term elections to start buying!
Old Leaders vs. New Leaders
They led us through one of the most trying 12 months in Wall Street's history! One year later and a thousand Dow points lower, these sectors are still standing tall -- auto retailers, home builders and hotel casinos all way up since last September. Will they continue being the leaders?
Gregg says investors have already seen the best from home builders and the auto retailers, so right now he would stay away from them. He thinks the gaming sector has gotten a boost - states are having problems meeting their budget deficits and have turned more towards lotteries. He recommends buying International Game Technology (IGT), which is up 55 percent since September 11th. He doesn’t own it.
Jim would also stay away from investing in the home builders and auto retailers sector. He doesn’t like to buy stocks that are up so high. A fearless stock Jim would recommends and owns is Rio Tinto (RTP), which is up 16 percent since September 11th.
Price’s recommends and owns Gold Fields (GFI). He thinks Gold is in a new bull market while there is a bear market going on in stocks. Gold Fields is up 238 percent since September 11th!
Meredith would sell CarMax Group (KMX), which is up 83 percent since September 11th. She doesn’t own it.
Saudi Arabia says it's our friend, but Neil Cavuto says its actions show us otherwise. Especially in money matters. Ibrahim Hooper, spokesperson for the Council on American Islamic Relations says that they have been a good ally, and that our actions and words may be what's the matter.
Fox on the Spot
Gregg says stocks rally after weapon inspectors are allowed in Iraq!
Jim predicts Congress gives the OK to attack Iraq, and the market and world politics suffer!
Price thinks the election cycle theory works! Stocks will rally in 2003!
Meredith thinks this election year will hurt the market!
Neil predicts Steve Case will leave at America Online (AOL)!