GO
Loading...

Bonds or Stocks: Which Way To Go?

Thursday, 12 Aug 2010 | 6:14 PM ET

Investors are at odds over whether the bond market or the stock market is the better way to invest?

Stock investors point to the sharp rally in multinationals such as McDonald's or China’s equity market -- with the Shanghai Composite up over 10% since early July.

Bond investors, however, see it differently. They’re bidding Treasurys higher on concerns of deflation and high unemployment.

So how should you trade?

I think they’re both a little right, says Stephen Weiss author of "The Billion Dollar Mistake."

However, with yields on the 10-year below 3% I just don’t think bonds are as attractive as stocks that have high yields such as Johnson & Johnson, Lorillard or Verizon or some master limited partnerships.

Hear more from Stephen Weiss. Watch the video now!

Bonds or Stocks?
Corporate bond strength contrasts with flailing share prices, with Stephen Weiss, "The Billion Dollar Mistake" author.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Aug 12, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AKAM), (BAX), (FCX), (MOS), (OXY), (PFE), (POT), (SU), (XBI), (GLD); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman owns (GOOG); Finerman’s firm owns (HPQ); Finerman and Finerman’s Firm owns (BAC); Finerman and Finerman’s Firm owns (JPM); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russsel 2000 puts; Jon Najarian owns (CSCO) short calls; Jon Najarian owns (VIX) Call spread; Jon Najarian is short (SQQQ)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (AA) for clients
Edwards owns (AKAM) for clients
Edwards owns (AMZN) for clients
Edwards owns (ABT) for clients
Edwards owns (BA) for clients
Edwards owns (BAC) for clients
Edwards owns (BBY) for clients
Edwards owns (BKE) for clients
Edwards owns (C) for clients
Edwards owns (COP) for clients
Edwards owns (CVX) for clients
Edwards owns (COH) for clients
Edwards owns (DELL) for clients
Edwards owns (DO) for clients
Edwards owns (F) for clients
Edwards owns (FCX) for clients
Edwards owns (GE) for clients
Edwards owns (GLD) for clients
Edwards owns (GOOG) for clients
Edwards owns (GLW) for clients
Edwards owns (HAL) for clients
Edwards owns (HES) for clients
Edwards owns (HPQ) for clients
Edwards owns (INTC) for clients
Edwards owns (JNJ) for clients
Edwards owns (JPM) for clients
Edwards owns (JNK) for clients
Edwards owns (MCD) for clients
Edwards owns (MS) for clients
Edwards owns (MSFT) for clients
Edwards owns (NE) for clients
Edwards owns (NSC) for clients
Edwards owns (PEP) for clients
Edwards owns (PNC) for clients
Edwards owns (QQQQ) for clients
Edwards owns (RIG) for clients
Edwards owns (SLB) for clients
Edwards owns (SPY) for clients
Edwards owns (TM) for clients
Edwards owns (TM)
Edwards owns (TTM) for clients
Edwards owns (TXN) for clients
Edwards owns (UNP) for clients
Edwards owns (VXX) for clients
Edwards owns (VZ) for clients
Edwards owns (WFC) for clients
Edwards owns (WFT) for clients
Edwards owns (WFMI) for clients
Edwards owns (WMT) for clients
Edwards owns (V) for clients
Edwards owns (XOM) for clients
Edwards owns (YHOO) for clients
Edwards owns gold for clients
Edwards owns platinum for clients
Edwards owns silver for clients
Edwards owns the Russell 2000 for clients
Edwards owns the S&P500 for clients

Anthony Scaramucci
SkyBridge Capital owns (LO)

Stephen Weiss
Weiss owns (MRK)
Weiss owns (VZ)

David Riedel
***No Disclosures***

Colin Gillis
***No Disclosures***

Brian Stutland
***No Disclosures***

CNBC.com with wires.

  Price   Change %Change
JNJ
---
LO
---
VZ
---
MCD
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report