‘Cyprus Could Be Good Thing’: Trader
Bad news out of Cyprus means the Federal Reserve will continue its monetary easing, which will be good for stocks, Simon Baker of Baker Avenue Asset Management said Monday.
On CNBC's "Fast Money," he made the bull case for stocks despite the specter of trouble for Cypriot depositors.
"I think the Cyprus thing could be a good thing," he said, adding that uncertainty in the market would translate to more quantitative easing from the Fed.
"Do I want to own U.S. equities/stocks? Yes, I do. And now that the headline news is over in Europe – it is. I think European stocks are good," he said. "We're 1 percent off the high."
Shelter Harbor Capital's Brian Kelly took the opposing view.
"Look at the European banking index," he said. "It had a 7 percent move. It was up 2 percent, down 4 percent. It's a massive, massive move today in that sector.
"I think Cyprus is going to have – there's going to be some contagion. We'll see tomorrow when they open the banks, but here you want to be short the S&P."
Trader disclosure: On March 25, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Simon Baker is long AAPL; Simon Baker is long JPM; Simon Baker is long GLD; Simon Baker is long YHOO; Simon Baker is long EBAY; Guy Adami owns C; Guy Adami owns GS; Guy Adami owns INTC; Guy Adami owns MSFT; Guy Adami owns AGU; Guy Adami owns NUE; Guy Adami owns BTU; Guy's note: "My wife, Linda Snow, works at Merck"; Brian Kelly is long Treasuries; Brian Kelly is long GOLD; Brian Kelly is long Silver; Brian Kelly is short S P; Brian Kelly is short .DAX; Brian Kelly is short copper; Pete Najarian is long stock AAPL; Pete Najarian is long stock BBRY; Pete Najarian is long stock SBUX; Pete Najarian is long stock FB; Pete Najarian is long stock MSFT; Pete Najarian is long calls NOK; Pete Najarian is long stock GE;
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