#1 - SELL THE NEWS?
Newsweek says we're on the “road to recession” but is the magazine reading this market correctly?
I think we are in a recession, says Karen Finerman, but the critical issues are how deep will the recession be and how pervasive. I think those are the more important points.
I agree that we’re probably in a recession, adds Guy Adami, but I have some early recovery names. Take a look at chemical stocks such as Dupont (DD), Eastman Chemical (EMN) and others. I think all these companies are buys at certain levels. But if you wait for the recovery it will be much too late to buy these names.
Also I like the rails, Adami adds. Watch Burlington Northern (BNI) earnings Tuesday – I think they’ll reveal that we’re in a recession but things aren’t as bad as they seem.
I agree that it’s time to start building a position, adds Jeff Macke. Look at some retail names for the long term.