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2014 Playbook: Buy Facebook or Twitter?

Izzy Best, CNBC News Associate
Thursday, 19 Dec 2013 | 3:20 PM ET
Jamie Dinan's 2014 investing themes
Thursday, 19 Dec 2013 | 12:05 PM ET
Digging into current economic trends, including consolidation and activism, with Jamie Dinan, founder, Chairman and CEO of York Capital Management.

On the heels of the Fed's decision to taper and slow down its monthly bond buying by $10 billion, traders weighed in on CNBC's "Halftime Report" with their reaction — and their 2014 playbook.

"If you look at the market's reaction, the Fed got it right," said Jamie Dinan, CEO of York Capital Management. Fed Chairman Ben Bernanke "made it very clear that basically rates would stay low for a long period and the 6.5 percent unemployment rate is no longer a magic number."

(Read more: Here's what changed in new Fed statement)

Airline industry dramatically changed: Dinan
Jamie Dinan, founder, chairman and CEO of York Capital Management, explains why his firm owns most of the major airlines.

The key for investing in year ahead is business confidence, said Rob Sechan, UBS Private Wealth Management, managing director.

"The story of 2014 is one of capital spending," Sechan said.

So, where are investors putting their money for 2014?

Airlines

With consumer spending on air travel up nearly 5 percent and airlines charging for everything from pretzels to carry-on bags, some investors are bullish on the sector. Delta, Southwest, United Airlines and JetBlue are the big four airlines that control 90 percent of the airline market.

"We own most of the major airlines," Dinan said. "Everybody that's been on a plane know the seats are packed. In this growing economy, airline seats are becoming a scarce resource. These companies are being run more like businesses as opposed to airlines. We think these companies are attractively priced and are going continue to do well as we look out."

"United is going to do extremely well," added optionMonster.com co-founder and "Fast Money" trader Jon Najarian. "I think this one will outperform next year with the American-US Air consolidation and that will help boost prices across the board in virtually every market."

(Read more: AAA forecasts holiday travel increase)

Twitter vs. Facebook

Twitter was the biggest IPO story of 2013, begging the question: Will the stock still be flying high in 2014?

Najarian says no.

"Get out of Facebook and get into Twitter," Najarian said. "I think you'll get out-performance in early 2014."

Facebook CEO Mark Zuckerberg, Facebook itself, and board member Marc Andreessen are collectively selling 70 million Class A common shares as part of a $4 billion secondary offering. Zuckerberg is shifting the bulk of the stock, worth around $2.3 billion, toward a tax bill.

"You'd do better to trade them than if you buy them," Dinan said.

By Izzy Best, CNBC News Associate.

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