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After the global rate cut, why was the market rally so weak? Art Hogan, chief market strategist at Jefferies & Company, offered his insights to CNBC. He also gave sector picks and portfolio allocation advice.
Everyone welcomed the coordinated rate cuts from the U.S. Federal Reserve, European Union, Switzerland, Canada, Sweden and the Bank of England. But Hogan compared the intercontinental move to an ambulance:
"You're glad it got to your house in time. But you don't celebrate the fact that you needed an ambulance in the first place."
So what will it take to get stocks booming again?
"What the [equities] market wants is to see the credit markets working again. The first time you see a TED spread that collapses instead of expanding, or the first time we see the Libor rate coming down, the market's going to blast off." (Check those spreads here )
"The worst period of the U.S. dollar is behind us," said Royce Tostrams of Tostrams Groep.
He told CNBC that the greenback is now a "safe haven" for investors. Watch video for his outlook.
PowerShares DB US Dollar Index Bullish
PowerShares DB US Dollar Index Bearish
CurrencyShares Euro Trust ETF
EUR/USD Exchange Rate ETN
CurrencyShares Japanese Yen Trust ETF
Technical analysis expert Richard Suttmeier of ValuEngine.com believes a multi-year bear market lies ahead, unless the Dow can get back above 10,640 this month.
Inflation backlash?! Despite the global slowdown, that's what Rob Lutts predicts. So the founder and CIO of Cabot Money Management suggests preparing an anti-inflation strategy: gold ETFs and stocks.
"The action of central bankers globally is going to do two things for investors," Lutts explained. "It will debase the value of currency; and unleash — eventually — inflation."
"Not next month, not next quarter, but we think inflation is coming back."
And with world gold production down 10 percent from its year 2000 peak, he predicts the precious metal will hit $1,000 over the next six months, and $2,000 over the "next few years."
Lutts likes StreetTracks Gold Trust, Market Vectors Gold Miners and Barrick Gold.
Disclosure information was not availabale for Lutts or his company.
Financial stocks continue to take a beating, but Anton Schutz, portfolio manager of Mendon Capital, sees opportunities in financials with “too much capital.”
S&P's Sam Stovall says history points to an 18 percent market bounce in six months.
Michael Yoshikami, president and chief investment strategist at YCMNET Advisors, says if we haven’t hit the market bottom already, we’re at least two-thirds of the way there.
Charles Bradford of Soleil Securities expects Alcoa Aluminum to fall short of analyst expectations when it reports after the bell Tuesday.
Analysts are expecting earnings of roughly 54 cents per share from the metals company . Bradford thinks they'll come in with 45 cents a share.
Wachovia shares are down Monday on "crisis psychology" -- but hedge fund master Bill Ackman is optimistic.
Ackman, managing principal of Pershing Square, scooped up a 7 percent stake in Wachovia, or "about 170 million shares," amid the news that Citigroup would buy the troubled financial's banking business.
"We started buying aggressively after the Citi deal was announced," Ackman told CNBC. "What was interesting was citi was buying a subsidiary, but assuming holding company liabilities -- an unusual transaction.
With rules now in effect that boost acquirors' ability to offset losses from bad debts held by other banks, and as a result of the "unusual" structure of the deal, some "very interesting tax attributes" were created -- namely, tax losses that can be carried back or forward.