Take Your Position: 2009: Rebound Or '08 Redux?
This year, more than any other, it looks as if the intersection between Wall Street and Main Street lies in the heart of Washington DC.
In other words, this year more than ever markets will be shaped by what happens in our nation’s capital. So, are we likely to see a rebound or an ’08 redux?
“Finally governments around the world are slashing interest rates and providing economic stimulus,” says Dynamic Funds portfolio manager Noah Blackstein on Fast Money. “They’re pumping liquidity into systems in China, Europe and around the world.”
As a result he’s bullish and expects a stock market rebound. He tells the traders “2008 was one of the three worst years of the last 125 years, it’s time to position for a recovery.” In other words, the sheer odds of having a better a year are enough to make Blackstein feel bullish.
He adds that “a lot of bad news is priced into market, a lot of de-leveraging has occurred. In fact the bond market is pricing in double the defaults of the Great Depression.”
Blackstein just doesn’t see it getting that bad.
In the near-term he’s hopeful that the Obama stimulus plan will kick start the economy. However, “don't blindly buy infrastructure stocks on stimulus, do your homework first,” he counsels. Look at Cerner as a stimulus play.
And if you’re looking for other trades Blackstein also likes Qualcomm and Apple .
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Trader disclosure: On Jan 2, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Macke Owns (MCD), (WMT), (TM), (DIS): Kinahan Owns (DELL), (GE), (HD), (HPQ), (INTC), (LEHMQ), (C ), (YHOO): Kinahan Is Short (BAC) Puts, (CSCO) Puts, (MSFT) Puts
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Terranova Works For (VRTS): Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
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Funds Blackstein Runs For Dynamic Mutual Funds Own (QCOM)
Funds Blackstein Runs For Dynamic Mutual Funds Own (AAPL)
Funds Blackstein Runs For Dynamic Mutual Funds Own (CERN)
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