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Rally Not Yet in Ninth Inning: Pro

Wednesday, 8 May 2013 | 5:57 PM ET
Rally Not Yet in Ninth Inning: Pro
Wednesday, 8 May 2013 | 5:05 PM ET
Stocks might be the best vehicle for investors, Kenneth Tropin of Graham Capital Management says.

Stocks might be the best vehicle for investors, particularly because there is no alternative, Kenneth Tropin of Graham Capital Management said Wednesday.

"We're in a situation where we have global monetary easing, and you're really not getting a return on fixed income," he said. "So, investors have to invest equities. Even though they've run up, they probably are going to continue."

Tropin made his comments from the SALT Conference in Las Vegas, which runs through May 10.

On CNBC's "Fast Money," he noted what could change the outlook for stocks.

"I think you have to look at when will the central banks potentially tighten," he said. "I don't believe they're going to tighten this year. I don't believe they're going to tighten in the first half of year, maybe in the second half of 2014."

Tropin said that the stock market could continue to post gains.

(Read More: S&P Logs 5-Day Rally, Dow Posts Fresh High)

"So, are we in the fifth inning, sixth inning? I don't think we're in the ninth inning,"he said. "That doesn't mean we won't have corrections. I think we will. Any healthy market move is going to have some pullbacks."

Tropin also said commodities weren't necessarily a better play.

"I think commodities are going to be choppy and tough to trade," he added. "Commodities are a sterile asset if you're talking, for example, gold. You only make money on gold when it goes up. There's no dividend. There's no return on it."

Trader disclosure: On May 8, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is funds long EMC; Steve Grasso is funds long MSFT; Steve Grasso is funds long HPQ; Steve Grasso is funds long NEM; Steve Grasso is funds long ZNGA; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long GOOG; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long FINL; Karen Finerman is short SPY; Karen Finerman is short MDY;

For Colin Gillis
Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report; Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Microsoft within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Microsoft; Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Yahoo within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Yahoo.

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