Strategy Session

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It’s the billion dollar question circling Wall Street. Is this the time to buy and start building long term positions? Or is another shoe about to fall?

“When Warren Buffett buys it’s usually a pretty good buying signal,” reveals Edward Yardeni on CNBC’s Closing Bell. He tells Dylan Ratigan that he finds valuations "extraordinarily low" barring a prolonged recession or depression.

”If you think all the Fed easing and the federal programs are going to work, and I do, then a year or two years down the road you’ll look back and say this was a good value. However, one month from now, you might not be that happy.”

In other words, if you want to start building a position you've got to have a longer time horizon.

If you’re buying stocks now, “you’re buying future value," adds Danielle Hughes, founder of Divine Capital. “I’m looking into the future for at least 5 to 10 years.”

That’s a pretty long time and as a result Hughes is being selective. “I’m only getting into positions that will pay me to wait." In other words companies that pay dividends and have for many years.

How does she recommend trading. “I’d pick and choose among the financials. I’ve bought Citigroup when it was down big as well as Old Republic and Hatteras Financial .”



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