CNBC Stock Blog

4 Stock Picks to Play the Fed's 'Great Move'

The Federal Reserve raised the discount rate late Thursday by a quarter  percentage point to 0.75 percent. How will the Fed’s action affect stocks? Jim O’Shaughnessy, founder of O’Shaughnessy Asset Management, and Alan Valdes, vice president at Kabrik Trading, shared their insights and stock picks.

The Friday Trade

“I think the move is great,” Valdes told CNBC. “Most of the traders think it’s a great move at the right time.”

O’Shaughnessy said the Fed’s move is “not a big deal.”

“There’s about $15 billion at the Fed window and there’s about a trillion dollars of excess capacity in the banking system,” he said.

“What this shows us is that the Fed thinks the economy is strong enough for the move right now. For people who say this is a big surprise, Bernanke had already said that this is what they were going to do.”

O’Shaughnessy said he remains bullish on the market over the long term.

“I think that various things are in place that are going to make equities the asset class of choice over the next 3 to 5 years,” he said.


Valdes Likes:

American Water Works

O’Shaughnessy Likes:


TRW Automotive Group


Other Investor Views:

CNBC Data Pages:

CNBC Slideshows:



No immediate information was available for O’Shaughnessy or Valdes.