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Stimulus Hopes Spur Asset Recovery: Godfrey

Uncertainty about the European Central Bank’s next steps might be bringing about an asset recovery, Gemma Godfrey, head of investment strategy at Brooks Macdonald in London, told CNBC on Friday.

“We’re seeing the steps in the right direction, but there’s still a long way to go,” she said on “Fast Money.”

Godfrey noted that ECB President Maria Draghi’s less-than-optimal transparency is already having an effect.

“That’s going to give the markets cause for caution, and with respect to QE3, it actually makes QE3 less likely – the fact that we’ve got BOE bond buying, the fact that we’ve got ECB bond buying,” she said.

“There’s a self-negating circle that hopes for stimulus are actually causing an asset recovery, which then reduces the pressure for stimulus.”

Trader disclosure: On Sept. 7, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long INTC; Pete Najarian is long SLV CALLS, SHORT PUTS; Pete Najarian is long SCCO CALLS, SHORT PUTS; Stephen Weiss is long AIG; Stephen Weiss is long QCOM; Stephen Weiss is long BRCM; Stephen Weiss is long UGL; Stephen Weiss is short VALE; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in GLD; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in SWHC; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI;

For Glen Yeung
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of INTC.


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