Neil Cavuto was joined by retired U.S. Army Colonel and FOX News contributor David Hackworth; Gregg Hymowitz, founder of Entrust Capital; Alexandra Lebenthal, president & CEO of Lebenthal & Company; and Jim Rogers, president of JimRogers.com.
Irrational De$pair?
Remember "irrational exuberance"? Welcome to "irrational pessimism"? Just like overly giddy optimism pumped up bad stocks during the late 90's, is overly done pessimism pummeling down good stocks today?
Jim says yes, and that this is a classic sign of a bear market. He does think this environment creates some good buying opportunities. One of which is MSCI Canada Index (EWC). He owns it and says the index which tracks the Canadian stock market should benefit from Canada’s natural resource based economy.
Gregg says there are many pressures on the market: from worries about profits to confusion over whether there will be inflation or deflation, war or no war, and recession or no recession. So until there is more certainty, the market will remain volatile. One stock he thinks may have been beaten down too much recently is J.P. Morgan Chase (JPM). He owns it and likes it price, but warns there may be more bad news related to it.
Alexandra agrees with Gregg. She says there’s no data that shows a completely positive or negative trend. She also thinks investors’ worries about war with Iraq will keep the market down. That’s why she is still sticking with bonds, especially tax-free state sponsored Tobacco Bonds. They are issued by states like New Jersey and yield up to 6 percent tax free.
More For Your Money: War Plan$
War with Iraq, it looks more likely each week. But if the U.S. does attack, will it be a short war or a long one?
Col. Hackworth says this war will be longer than the Gulf War, and whatever happens it will not be what we expect and it will be more expensive than we expect.
Jim thinks if we attack Iraq it will be a long term battle. If that happens he recommends buying natural resources like sugar and lead.
Gregg says whether it’s a short or long war, he would sell oil and defense stocks when it begins. He thinks those sectors have run up too far in anticipation of a war.
Alexandra says if we go to war she recommends staying away from stocks and buying U.S. Treasuries instead.
Head-to-Head
Last week Al Gore, a man who was a few hanging chads away from becoming President, came out and tried to divide the country as it prepares for war. Neil says it's un-American, dangerous and a blow to the country, economy and your bottom line. But Alan Colmes, co-host of Fox's hit primetime show Hannity & Colmes says don’t attack the messenger.
FOX on the Spot
Alexandra predicts J.P. Morgan Chase will axe its CEO & Tyco will drop another profit bombshell!
Gregg thinks CNN & ABC News decide not to hook up. No match for FOX News Channel!
Jim says Brazilians elect liberal Lula, which will be bad for U.S. & Latin American markets!
Colonel Hackworth predicts bombs fall on Iraq by end of 2002!
Neil says a vote on Iraq will get delayed and Democrats could find themselves playing with fire!
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