Dawn of American Decade, Say Fast Money Pros
On Tuesday, the Fast Money traders were trying to determine if the new found bullish sentiment in the US stock would extend much beyond January 1st.
Largely the pros think it will – although their optimism runs across very different time horizons.
Trader Brian Kelly has the shortest outlook. He’s bullish over the next 3 months but after March, he’s more cautious.
“Long-term, we need a catalyst for corporations to really spend all the cash on their balance sheets,” he says. “With China and Europe slowing, I’m not sure we have that. Recent CEO surveys talk about companies reining in spending. That’s not a positive long-term. I would be cautious as of March. At that point we could see a slowdown.”
Top hedge fund manager Anthony Scaramucci is optimistic for all of 2012.
He says the incrementally positive action in the financial sector is reason enough to be bullish. “The financials, which have lagged, are getting stronger.” Also, he says the market is cheap. And sentiment is so bad – it augers well (because expectations are low.)”
However trader Mike Murphy and CNBC Contributor Ron Insana make the boldest predictions. Both think we’re at the dawn of the American decade.
“We’re on our way to becoming a self-contained economy,” Insana says. “We have an energy boom and manufacturing is coming back. Although I think we’re going to be more inward looking, I believe it will benefit the domestic economy,” he says.
Trader Mike Murphy takes the thesis a step further. He expects investors to focus attention away from China and toward the US.
“I think we’re going to see what the US is made of,” he says. In other words, he expects over the next decade the US will become a driver of global growth.
What do you think? We want to know!
* The usually bearish Doug Kass is bullish as well. Click here to go to Doug Kass: S&P Will Trade Above 1525 in 2012
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Trader disclosure: On Dec 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Kelly is short CREDIT SUISSE (CDR); Kelly is short UBS (UBS); Kelly is short BARCLAYS (BCS); Kelly is long ISHARES RUSSELL 2000 (IWM); Kelly is long SPYDER S&P REGIONAL BANKING INDEX (KRE); Kelly is long UNITED TECHNOLOGIES (UTX); Murphy is long AK STEEL (AKS); Murphy is long BANK OF AMERICA (BAC); Murphy is long WHIRLPOOL (WHR); Murphy is long ABERCROMBIE (ANF); Najarian has long call spreads in APPLE (AAPL); Najarian has long call spreads in AK STEEL (AKS); Najarian has long call spreads in US STEEL (X); Najarian has long call spreads in PNC FINANCIAL (PNC); Najarian has long call spreads in MICROSOFT (MSFT); Najarian has long call spreads in RIMM; Najarian has long call spreads in CNI; Najarian has long call spreads in CP; Najarian has long call spreads in NSC; Najarian is long CIGX; Najarian is long CBOE; Najarian is long CME; Najarian is long SHLD stock; Najarian is short call spreads in Sears Holdings (SHLD); Scaramucci is personal long BANK OF AMERICA (BAC); Scaramucci is personal long MCDONALDS (MCD); Scaramucci is personal long YUM BRANDS (YUM); Scaramucci is personal long CITIGROUP (C); Scaramucci is personal long GOOGLE (GOOG)
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