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Stocks Still the Best Place to Be: Pros

Thursday, 20 Sep 2012 | 12:29 PM ET

Cyclicals, financials or industrials? “Fast Money” pros picked their favorite sectors Thursday for the current investment climate.

“Stay away from the cyclical stocks. Stay away from the material stocks, which is somewhat counterintuitive because usually you want to go there when they try to stimulate the economy,” said Short Hills Capital’s Stephen Weiss on CNBC.

One word of caution, though: “China’s the tail that is wagging the entire dog.”

Stocks Still the Best Place to Be: Pros
Cyclical stocks, financials, industrials -- "Fast Money" pros pick their favorite sectors for this investment climate.

Dennis Gartman, editor of the widely followed Gartman Letter, agreed with Weiss and urged caution on bonds.

“The value of an 01, as we call it, having grown up in the bond market, the value of an 01, the price movement of an 01 basis point move in interest move in interest rates is amazingly larger at these levels than when we were trading at 14 or 15 percent at the long bond,” he said.

“You have a 2- or 3-basis-point move in the long bond, and you have a clip on your premium very swiftly,” Gartman added. “People forget that fact.”

Stephanie Link of TheStreet.com sounded positive on equities, but broke from Weiss.

“I do want to have some cyclical exposure. Housing is cyclical, and that has been a home-run investment this year,” she said.

Link noted that construction was improving and said that industrial companies were priced at “trough valuation.”

Trader disclosure: On Sept. 20, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Dennis Gartman is long AUD; Dennis Gartman is long CAD; Dennis Gartman is long GOLD; Dennis Gartman is short Euro; Dennis Gartman is short Yen; Dennis Gartman is short Crude Oil; Dennis Gartman is short SOY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Steve Weiss is long T; Steve Weiss is long VZ; Steve Weiss is long VOD; Steve Weiss is long AAPL; Steve Weiss is long TOT; Steve Weiss is long HK; Steve Weiss is long AIG; Steve Weiss is long BAC; Steve Weiss is long BBT; Steve Weiss is long QCOM; Steve Weiss is long MTGE; Steve Weiss is long CINY; Steve Weiss is long AMTG; Steve Weiss is long M; Steve Weiss is long EUO; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long DD; Stephanie Link is long NKE.

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