The Bear: One Year Later


October 9th, 2007 -- it felt like any other day on Wall Street. The Dow added 121 points on its upward march toward 15,000. The big headline involved the bull market celebrating its 5th anniversary.

But exactly 5 years to the day after the bull began its stampede, it was stopped in its tracks by a resurgent bear. The slumbering giant began to awake when Merrill Lynch CEO Stan O'Neal became an early victim of subprime and resigned after an $8.4 billion dollar write-down.

Still by the beginning of this year, the S&P was only down 5%. Not so bad. But it would soon became abundantly clear that this grizzly was just coming out of hibernation

Next, one bear took down another when venerable Wall Street firm Bear Stearns swiftly collapsed in March. By this point the market was down 18% from it's high.

Jump ahead a few months to early summer when Wall Street hemorrhaged cash and credibility. Soon after Fannie, Freddie, AIG, Lehman, Merrill, Wamu and Wachovia were all gone or sold at fire-sale prices.

A third of the market's value has been wiped out since that seemingly innocent day one year ago. Now on the first anniversary of the bear market Fast Money examines various ways to battle the bear.

Treasuries: They’re a great place to go if you’re scared but I think there are other placed to go that are better, says Jon Najarian

Gold: I wouldn’t go overweight or underweight, says Joe Terranova.

Consumer Staples: I’d look at Procter & Gamble or Wal-Mart , says Tim Seymour.

Health Care: I think it’s a challenging space, says Zach Karabell. There’s going to be government action in the industry so be careful here.

Cash-rich companies: The best example of a cash rich company is Exxon and they’re buying back shares, says Tim Seymour. This stock looks good to me.

Victims Of Hedge Fund Liquidation: I think hedge funds threw more than a few babies out with the bathwater, says Joe Terranova. Some of them include Mastercard , Potash and RIMM , says Joe Terranova.

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Trader disclosure: On Oct.9, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns, (AAPL), (EOG), (EXM), (FTO), (FCX), (GS), (MA), (NOV), (POT), (X), (VLO); Jon Najarian Owns C preferred, WFC preferred, JPM preferred; Karabell Owns (MS), (JPM), (IBM), (AAPL), (GOOG), (FCX), (GLD), (CAT), (AGU); Seymour Owns (MER), (F), (BX) (GE) with wires