Video Roundup: Is a Recession Coming?
Rate Cut Cure Worse Than Disease?
Art Cashin, director of floor operations at UBS Financial Services, believes that Fed Chairman Ben Bernanke wants to find "any way possible" to buttress the economy without resorting to lowering the Fed Funds rate -- and that may be for the best.
"The bulk of the market probably wants to hear a cut," Cashin notes.
But he belongs to a contrarian minority that fears "if you get the cut, you can get a backlash, too." He explains that a cut just may frighten investors into believing "things were even worse than we thought" -- and causing an investor exodus.
Don't Worry, Invest Happily
Eric Thorne, portfolio manager at Bryn Mawr Trust Wealth Management, told CNBC's Mark Haines that there is no recession forming -- period.
"There will be weak areas," Thorne concedes. "But overall, we see the economy continuing to expand, albeit at a slower rate."
"Investors will come back to this market more quickly than people expect," he predicts.
The strategist says health care and consumer staples will underperform; but the smart money should be in industrials, basic materials and technology.
Thorne believes that the Fed "has its finger on the trigger" -- and is fully prepared to cut rates. "It may be on Sept. 18 -- but it may be before that," he says.