CORRECTION CASUALTY: BROKERAGE STOCKS?
The news: Concerns that big brokerages such as Lehman Brothersand Goldman Sachs will be left behind as this market recovers?
The Word: Strazzini said, "I don’t think they will be left behind, but the fast money was already made. If we get some kind of blow-up overseas or in the sub-prime market, these stocks will suffer. I think you’ll see Bear Stearns and Lehman Brothers which are heavily exposed to these spaces have some weakness." Adami added, “I like Goldman Sachs.”
HOME IMPLOSION
The News: With so much volatility in the housing sector, is anything housing related dangerous to own?
The Word: Guy Adami said, "I like the non-residential construction space. The Genlyte Group Incorporated , and Cooper Industries a stock that nobody knows about. I like them both." Bolling said, "With new home sales down. You know how you make money in this market, you stay away from Home Depot and Lowe’s .
Jeff Macke said Eric Bolling is usually smart. But with all due respect you’re wrong about Home Depot.
CAN BARBARIANS SAVE US?
The News: Private Equity is booming as market falls
The Word: Erin Burnett said she’s spoke with private equity guys during the day on CNBC and they’ve told her that companies are on sale and they’re going shopping!
Jeff Macke said private equity can’t save the market. Bolling added, “In ’07 keep you eye on the utilities.”
DOES BUFFET HOLD THE ANSWER?
The News: Warren Buffett disclosed his holdings in Johnson and Johnson and U.S. Bancorp .
The Word: Guy Adami said "We’ve talked about Johnson and Johnson since last summer. I love this company it’s really a consumer brand stock now, not a pharama. I think JNJ is going to dominate."
Strazzini added, "Buffet likes the same names that private equity likes - names like Louisiana Pacific."
INTERNATIONALLY SAFE?
The News: With markets in China, India and others so vulnerable to erratic swings, is it safe to put your money in world markets?
The Word: Eric Bolling said we’ve been talking about emerging markets. I do think you should buy but let it breathe a little right now. I like (EWI), a South Korean ETF, and (EWL), a Swiss ETF.
Tim Strazzini added that he likes the Singapore ETF(EWS).
Questions? Comments? fastmoney@cnbc.com
Trader disclosure:
On MAR 2, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders.
Strazzini: Gold,(MER), WMT, YHOO
Bolling: Gold, Silver, Soybeans, Short Corn, (NMX), (ICE)
