Is The Commodity Bull Dead?


Commodity stocks are declining this year amid a global market sell-off. Does the drop signal a global recession or a buying opportunity?

Mike Dudas, Metals, Mining and Construction Analyst at Bear Stearns joins the panel for this conversation. Following is a synopsis of his main points.

--In talking to the companies he covers (mining, construction names), Dudas says they haven't seen evidence of a global recession. In other words, they haven't seen fundamentals changing for the worse.

- The move down in commodities, infrastructure, machinery and utility stocks in recent days suggests that investors are selling first and asking questions later.

-- Dudas recommends taking this opportunity to buy. He likes Newmont Mining (NEM) Freeport McMoRan (FCX) and the Materials SPDR (XLB), though the last pick could be volatile.


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Trader disclosure: On Jan 23, 2008, 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), (YHOO); Najarian Owns (BIIB), (C), (CSCO), (EBAY), (MCD), (MSFT); Najarian Owns (AAPL) Calls, (COP) Calls, (NSC) Calls, (WM) Calls, (YHOO) Calls, (YRCW) Calls; Finerman Owns (GS), (M); Finerman's Firm Owns (MO), (ODP), (TSO), (YHOO), (AEO), (CROX), (HD), (WMT); Finerman's Firm And Finerman Own (FLS); Finerman's Firm Is Short (SPY), (MDY), (IJR), (IWM), (SPG); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts