The credit crisis is not over and losses in the financial sector could reach $1.3 trillion, according to star hedge fund manager John Paulson, who says he remains short credit.
Paulson, who earned $3.7 billion in 2007 according to Alpha Magazine by going short the subprime sector during the U.S. mortgage meltdown, also said a deterioration in consumer spending was set to drive the U.S. economy into recession this year.
As if that’s not depressing enough RBS also jumped on the doom and gloom wagon. Bob Janjuah, a respected credit market strategist at the Royal Bank of Scotland, predicted the credit crunch combined with soaring inflation would send the S&P plunging 300 points lower before September.
Sure there's negative news out there, but these predictions can't keep a good trader down. Here's what the Fast Money gang says could be worth a look.
Jeff Macke
Go bigger cap. Look at Citiwith a $19.50 stop and the United States Oil Fund with a stop at $100.
Guy Adami
Look at Deere & Co. I think the ag play still works.
Joe Terranova
Integrated oil could begin to rally.
