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Trading a Jobless Recovery

Friday, 7 Jan 2011 | 6:04 PM ET

As U.S. unemployment remains high, so too does the markets — an issue examined by Zachary Karabell in the cover story of this week's Time Magazine and on Friday's "Fast Money," as well.

"No matter what we spend in terms of stimulus, no matter how much of unemployment benefits, technology and globalization means that a lot of jobs that have gone from the United States are not coming back," explained Karabell, president of RiverTwice Research.

Stocks Continue to Rally?
An outlook on where stocks are headed, with Zachary Karabell, River Twice Research president.

While Karabell is bearish on that aspect of the economy, he remains bullish on the markets themselves. Karabell noted that many companies continue to report positive earnings simply because they're not tethered to US employment.

Being as Karabell thinks employment isn't likely to improve in the U.S., he wants to invest in sectors that won't be impacted by the job situation, including names like IBM and Coach .

  Price   Change %Change
COH
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IBM
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Trader disclosure: On Jan. 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AA); Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (DRYS); Seymour owns (F); Seymour owns (FXI); Seymour is short (MOS); Seymour is short (POT);
Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Adami's wife works at (MRK); Terranova owns (GM); Terranova owns (C); Terranova owns (VRTS); Terranova owns (UPL); Terranova owns (PEP); Terranova owns (OXY); Terranova owns (GS); Terranova owns (LTD); Terranova owns (GLD) puts; Terranova owns (SLV) puts; Terranova owns (FCX) puts

For Brian Kelly
Accounts Managed by Kanundrum Capital Own (DRYS)
Accounts Managed by Kanundrum Capital Own (FCX)
Accounts Managed by Kanundrum Capital Own (GLD)
Accounts Managed by Kanundrum Capital Own (MCP)
Accounts Managed by Kanundrum Capital Are Long USD
Accounts Managed by Kanundrum Capital Own (TBT)
Accounts Managed by Kanundrum Capital Are Short The Euro
Accounts Managed by Kanundrum Capital Are Short The Yen
Accounts Managed by Kanundrum Capital Are Short (XLF)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

For Simon Baker
Baker And Baker Avenue Asset Management Own (AAPL)
Baker And Baker Avenue Asset Management Own (C)
Baker And Baker Avenue Asset Management Own (FCX)
Baker And Baker Avenue Asset Management Own (FFIV)
Baker And Baker Avenue Asset Management Own (GDXJ)
Baker And Baker Avenue Asset Management Own (GLD)
Baker And Baker Avenue Asset Management Own (IBM)
Baker And Baker Avenue Asset Management Own (ILMN)
Baker And Baker Avenue Asset Management Own (IWM)
Baker And Baker Avenue Asset Management Own (SNDK)
Baker And Baker Avenue Asset Management Own (SLV)

For Dennis Gartman
Funds managed by Dennis Gartman are long the Canadian Dollar
Funds managed by Dennis Gartman are short Yen
Funds managed by Dennis Gartman are long gold
Funds managed by Dennis Gartman are long Silver
Funds managed by Dennis Gartman are short Sterling
Funds managed by Dennis Gartman are long March KC Wheat
Funds Managed by Dennis Gartman are long Soybeans
Funds managed by Dennis Gartman are short Euro

Dennis Gartman SOT
Funds Managed by Dennis Gartman were long Gold on 1/4/2011

For Louis Navellier
Navellier Owns (BWA), (ILMN), (FFIV) In Managed Accounts
Funds Managed By Navellier Own (BWA), (ILMN), (FFIV)
Navellier Invests In His Funds

For Zachary Karabell
Karabell owns (AAPL)
Karabell owns (COH)
River Twice Capital owns (IBM)

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  Price   Change %Change
COH
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IBM
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