Neil Cavuto was joined by Jim Rogers, author of Adventure Capitalist; Gregg Hymowitz, founder of Entrust Capital and co-chair of Rep. Richard Gephardt’s presidential campaign; Meredith Whitney, FOX News Contributor; Joe Piscopo, Avellino Productions CEO; Bob Olstein, president of Olstein Funds; Bobby Kennedy Jr., Natural Resources Defense Council sr. attorney.
Bush’s Road Trip: Make, or Break the Markets?
Neil Cavuto: President Bush is making the rounds overseas this weekend, trying to round up support for the war on terror, peace in the Middle East and fixing the economy. But will what he does over there, make or break the market over here?
Bob Olstein: Markets need confidence and President Bush’s diplomatic effort overseas can help build that confidence. But the real issue is when will business spending pickup to justify the current valuation of the market. We need profitability and we need quality of earnings, which are beginning to show. Bush, as a confidence level is important, but you need real earnings now.
Neil Cavuto: Jim Rogers, does anything the President says or does effect your investment decisions in the coming days?
Jim Rogers: It's a complete waste of time, and the trip is a complete waste of our money. The only good thing that could come out of this trip would be peace in the Middle East.
Gregg Hymowitz: I think the main topic will be the dollar. The weak dollar is going to help the U.S. economy and is going to help the manufacturing base, and Europe is feeling it. I think what will come out of this is the European Central Bank cuts rates very very aggressively next week to fight the weaker dollar.
Jim Rogers: Something that may happen over this weekend is they may do something that will make the dollar rally. The dollar is overdue for a rally. I suspect something will make the dollar rally. I don't know what, but something will.
Neil Cavuto: Joe Piscopo says our economy is doing pretty well. He knows nightclubs are pretty full.
Joe Piscopo: I'm on the street level and it's been doing really well. The movie industry, with Bruce Almighty having a fantastic weekend opening. The Tropicana, in Atlantic City, is doing a $300 million expansion. That tells me that the economy is doing all right.
Jim Rogers: If people don't have money, they're not going to go to these clubs.
Bob Olstein: This economy is in better shape than it was ten years ago.
Gregg Hymowitz: We see the weak unemployment figures everyday. You have seen improvement to the bottom line, but only because companies have cut costs.
More for Your Money: Baby’s Gift$ for Jim
Neil Cavuto: Someone here is "expecting" a new addition to their family very soon. Who is it and what's the one stock everyone else says will give their new baby more for her money? Okay, the lucky guy is Jim Rogers. Congratulations: have you started buying stocks for her?
Jim Rogers: I just hope she comes out healthy and solid. We haven't even been able to give her a name yet. I've been around the world twice, and that has been easier than finding a name for our baby girl.
Neil Cavuto: How would you advise Jim Rogers, Meredith?
Meredith Whitney: Most of the stocks that I looked at for a twenty-one year horizon, haven't even been around for that long. So I chose a very conservative core index fund, the Vanguard Institutional Fund (VINIX). The last ten years it's had about 9.7 percent returns.
Bob Olstein: I recommend one of the key holdings in my portfolio for the last 3-4 years, Mattel (MAT). We're going to give this young lady some Barbie dolls. It's got great management and $500 million in excess cash flow every year. And Barbie is going to be around for another 20 years.
Gregg Hymowitz: I've been sitting next to Jim for about a year now and I'm assuming this new baby girl is going to be a chip off the old block. Jim is one of the most exotic investors I know, and I've actually brought some things in today to give you right now. So here you go: coffee, sugar, rice and a long-term play, orange juice.
Jim Rogers: (laughter) I’m long sugar, rice and orange juice.
Gregg Hymowitz: I also have a serious gift or Jim’s new baby. I think advertising is something that will always be around. So Liberty Media (L) is one of the stocks I'd recommend.
Neil Cavuto: So Jim, what are you buying for your own newborn?
Jim Rogers: I've bought her U.S. gold coins. The year is 2003, because she's being born in the year 2003. They're one of the few things that I know will be valuable in the year 2024, when she turns 21. Right now I’m mostly selling. In fact, I sold my positions in the Morgan Stanley Austria Index (EWO) and the Morgan Stanley Netherland Index (EWN).
FOX on the Spot
Gregg Hymowitz: The new tax bill will not create new jobs.
Jim Rogers: Social Security, Medicare and other benefits are in jeopardy as the total US Government owes over $44 trillion in future off-balance sheet obligations.
Meredith Whitney: Buy QQQ! The Nasdaq jumps 30 percent within a year.
Bob Olstein: Don't buy long-term bonds. The recent rush to treasuries will backfire causing big losses.
Joe Piscopo: NJ Devils and NJ Nets win it all. A first for same-ownership and same-arena teams!
Neil Cavuto: President Bush will score success in the Middle East and it will help markets. The peace deal might not last, but positive markets will!