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Bonds or Stocks: Which Way To Go?

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!



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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
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Anthony Scaramucci
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Stephen Weiss
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David Riedel
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