Forget the knee jerk euphoria. Was Tuesday's Fed move the right one and does it signal the okay to jump back into stocks? Several esteemed Wall Street watchers joined the panel for this conversation. Here’s a summary of their main points.
John Ryding, Bear Stearns Economist
- Surprised Fed made a half point move.
- Says Fed cut interest rate to help economy when, as yet, there’s not a big sign of weakening.
- Believes rate cut could “let inflation genie out of the bottle.”
- Urges investors to read the last chapter of Greenspan’s book which anticipates interest rates going into double digits.
Stacey Briere Gilbert, Chief Options Strategist for Susquehanna International Group
- Believes inflation risk is still lurking.
- Doesn’t feel a 50 basis point cut will save the estimated 1.7 million homeowners from foreclosure because of subprime slime.
- Recommends buying stocks with a lot of international exposure such as Freeport McMorRan (FCX) because oil is trading at $81 and the dollar is making lows.
Jon Najarian, Co-Founder OptionMonster
- Feels Fed gave credit market much needed relief to ease stress and consequently stock market will benefit.
- Believes European Central Banks and Bank of England will move into a "loosening" mode.
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Trader disclosure: On Sept. 18, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC); Pete Najarian Owns (XLF); Pete Najarian Owns (GS) Options; Pete Najarian Is Short (ETFC); Finerman's Firm & Finerman Own (HD); Finerman's Firm Owns (ASD), (AA), (COP), (TXI), (TGT), (MO), (NMX); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (WMT)
Stacey Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies; Susquehanna Financial Group And/Or Affiliates Together Own More Than 1% Of (FCX); Susquehanna Financial Group Is A Market Maker In (INTC); Susquehanna Financial Group And/Or Affiliates Together Own More Than 1% Of (BSC)