Avoid Wall Street. It’s a mess. For an easier ride you might want to consider Main Street.
Despite weak retail figures released Friday, there’s are four reasons why consumers may, once again, lift the market.
1. 30-year mortgage rates broke 6% and the Wall Street Journal’s Karl Case said housing was near a bottom. (Case is the co-developer of the Case/Shiller Index.)
2: Commodity prices such as gold and oil have pulled back.
3: Consumer stocks such as Proctor & Gamble have been the market's best performers this week.
4: There’s a massive cash hoard in mutual funds and hedge funds
If stability emerges how should you play it?
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Look at General Motors, says Jeff Macke. Those factors combined with the willingness of the government to get involved is probably bullish for the stock.
I think you should get long Home Depot and Lowe’s , says Pete Najarian.
I can see buying RIMM or Wal-Mart, adds Joe Terranova.
I don’t buy the whole thesis, counters Tim Seymour. There's no trade here.