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Answers To Your Questions About The Sell-Off

Monday, 5 Mar 2007 | 9:15 PM ET

Question #1:
Elizabeth from Massachusetts asked in light of last week's announcement that new housing prices increased 5.9% in the last quarter of 2006, do you think home-builder Centex's stock has over-reacted to housing bubbles fears? Is this a great opportunity to buy this stock at an inexpensive price as a long-term investment?

Guy Adami answered: "I don’t think Centex or the homebuilders overreacted at all. The stock is right back down where it was in July. I don’t run to the homebuilders here. I think you have more room on the downside."

QUESTION #2:
Kristen from New York asked that given the current political environment, is it worth buying the health insurers, like United Health, or the large pharmaceuticals, such as Merck or Pfizer ?

Tim Strazzini answered. He said United Healthcare is fully valued here. "I would look at Ventas , a healthcare REIT and I think it’s going to be a good buy soon and I wouldn’t be afraid to buy United Healthcare."

QUESTION #3:
Brian from Kansas asked wither the slide we’re seeing today in the energy markets is going to help stocks. Also, what’s with this sell-off in the Euro and do you think it will continue?

Eric Bolling answered: "The weakness in the oil markets is likely not to help the equity market. Oil over the long term is headed higher and you’re better off owning refiners."

QUESTION #4:
Danielle from New York, a singer/songwriter who has performed with Neil Young, said "My first album, entitled Danielle Evin, is available on iTunes, so it got me thinking. Given that Apple has had a big run up as of late, and given the competition from Microsoft , would you be buying puts on Apple and buying calls on Microsoft?"

Jon Najarian answered, "I wouldn’t do either of those two trades. I love Apple. I think it’s a phenomenal space. The stock was higher in the aftermarket. I think Apple is a far better buy than Microsoft. I think Apple could hit 100 long before you’ll ever see 30 at Microsoft."

Note: Apple closed at $86.32 today, while Microsoft ended up at $27.55.

Trader disclosure:
On MAR 5, 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), LBF
Bolling: Gold, Silver, Soybeans, Short Corn, S&P Futures, short Nasdaq futures, NMX
Najarian Owns (PALM)

Questions? Comments? fastmoney@cnbc.com

  Price   Change %Change
CTXS
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MRK
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MSFT
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PFE
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UNH
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VENTAS
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AAPL
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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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