After a week of anxiety and closely followed negotiations, Congress passed a Wall Street bailout on Friday.
Phew, now investors can breathe a sigh of relief. What???? The Dow tumbled by triple digits despite the catalyst. Now what?
Anyone who thinks they understand what a panic looks like has to have been around in 1907. “That’s the last time we really had one,” says First Trust Advisors Chief Economist Brian Wesbury. “I expect to see a short-term 2 to 3 month period where people pull back in every area. But that’s going to be a short lived thing because the Fed’s still very easy, tax rates are low and productivity is strong.”
Wesbury expects to come out of this slump like gangbusters in 2009. “Our export markets are growing 20% at an annul rate. So when people say the world is going to slow down, I say globalization is going to continue and trade is going to continue to grow faster than GDP.”
"Remember between 2000-2002 we lost $7 trillion in stock market wealth and consumer spending never fell one quarter," he adds.
In conclusion, ”We’ve lived through periods that were much worse,” he says.
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Trader disclosure: On Oct. 3, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Karabell Owns (AAPL), (AGU), (BHP), (GOOG), (JPM), (MS), (RIMM); Seymour Owns (AAPL), (INTC), (MER); Terranova Owns (AAPL), (EOG), (FCX), (FTO), (GS), (MA), (NOV), (POT), (X), (VLO)
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