‘I Would Sell With Both Hands’: Najarian
Washington lawmakers are "guaranteeing very, very small deals" on the federal budget, which means investors should sell, OptionMonster's Jon Najarian said Wednesday.
"I would sell with both hands because I think that when we hit January, we are going to be hitting a wall with all the folks that are going to want to take tax losses," he said. "They're not taking them now."
On "Fast Money," Najarian said he believed that Washington lawmakers would take the economy over the so-called "fiscal cliff," which would trigger tax hikes and federal spending cuts on Jan. 1 if a budget agreement fails to materialize.
"It's not going to be a drop of thousands of feet or anything like that. This'll be like going off a very high curb," he said. "In other words, we're going to fall and the car's going to feel it, but we're not going to crash after this."
The U.S. Treasury Department would likely take steps to postpone the nation's debt limit, he added.
StockMonster's Guy Adami sounded positive on budget negotiations.
"I think something gets done," he said. "A headline is worth, probably, a 25-, 30-point rally in the S&P. I think that's when you have to make a decision, and that decision would be to fade that move.
"But in the meantime, I don't put a lot on emphasis on what happens today. This is obviously a holiday-shortened week and volumes are light. As long as we stay around that 1,425 level, I'm cautiously optimistic."
Josh Brown of Fusion Analytics said there was "nothing we feel compelled to do."
"The outcome of the year is already known," he adding, noting that the only people trading heavily are those who need to do so.
Trading, Brown said, is seeing action in stocks with high beta, low volume, "things that can be juiced."
"It's just not a game we play on the asset management side," he said.