Best Case Scenario Buys
When the market comes back private equity guys like Steve Schwarzman appear ready to pounce. However, CNBC’s Melissa Lee reveals on Fast Money that he’s not quite ready to buy a stake in an investment firm, at least not yet.
According to Melissa Lee, Schwarzman says the loosening of restrictions makes it more attractive than not to invest in one of these firms but it’s still not enough. (Of course terms can always change.)
Meanwhile, billionaire investor Wilbur Ross, who made his fortune by buying distressed companies says that he would like to buy a regional bank. It appears he sees opportunity in industries that have been hurt by the current crisis.
With these Wall Street whales at least thinking about making a move, should you get in too?
If a deal gets done soon I expect to see some sanity return to the market, says the Negotiator. And once that happens private equity will probably put money to work. If you have the risk tolerance to deal with high volatility now is the time to get long some bank stocks.
But that’s the rub, adds the Wolf. If you’ve been kept up by your trades you’re not going to be able to stomach the volatility we’re about to go through. I can’t get long because I don’t know how these companies are going to be valued.
I’m also invested in the market, adds the Chairwoman. I think you can be in companies with great balance sheets that don’t have short term credit issues. In fact, now is a great time to buy. I’d much rather be in companies with the VIX at 35.
I’d keep an eye on an asset managers like Piper Jaffray , says the Pit Boss. They were up Tuesday when many others stocks in the sector were down. That speaks volumes.
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Trader disclosure: On Sept 23, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Najarian Owns (AAPL) And (AAPL) Collar:Najarian Owns (BBBY) Put Spread:Najarian Owns (MS), Is Long (MS) Puts, Is Short (MS) Calls:Najarian Owns (WB) Put Spread:Najarian Owns (XLF) Call Spread: Finerman Owns (GS); Finerman's Firm Owns (JNJ), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm And Finerman Own (WM); Finerman's Firm Is Short (IYR), (IJR), (SPY), (IWM), (MDY), (COF), (BBT); GE Is The Parent Company Of CNBC
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