With so many stocks trading at single digits, is it safe to say stocks are cheap?
For insights we turned to Doug Cliggott, the CIO of Dover Management. He’s a former JPMorgan strategist who made his name calling the top in 2000.
After hearing from Cliggott we're reminded that the key to successful investing is to buy low and sell high. That might sound infantile except as far as Cliggott is concerned stocks are anything but cheap "due to the drop in corporate profitability."
In other words, although stocks are trading in the single digits they’re either valued fairly or they're expensive. And if you agree with Ciggott that earnings could fall farther, then trade carefully -- the phenomenon would, in theory drag stocks even lower, as well as the entire S&P.
So, with that said, putting your money in stocks may not be your best move. But what should you do?
Ahead of the show Cliggott said “given low interest rates, Americans should pay down debt.” And if you’re looking to invest Cliggott recommends looking inflation protected securities such as the iShares Barclays TIPS Bond Fund .
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Trader disclosure: On Mar. 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (GE), (GS), (MS), (MOS), (AAPL); Macke Is Short (BRK.b); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU) ; Terranova Owns (MA), (AAPL), (RIG), (CVX), (GS), (AMZN), (BP), (KCE), (JPM), (X), (POT), (WYNN), (XBI), (HESS), (INTC), (BRCM), (DELL), (JOYG), (FXC), (MS), (XOM); Terranova Owns (AMGN) & (AMGN) Puts; Terranova Owns (IBM) Spread; Terranova Owns (DIS) & (DIS) Calls; Terranova Owns (COP) Calls; Terranova Owns MACI Oil Futures; Najarian Owns (GDX); Najarian Owns (C) Call Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (GD) Call Spread; Najarian Owns (X) Call Spread; Najarian Owns (GLD) Put Spread; Najarian Owns (JPM) & (JPM) Calls; Najarian Owns (MS) & (MS) Calls; Najarian Owns (MSFT) & (MSFT) Calls; Najarian Owns (WFC) & (WFC) Puts; Najarian Owns (XHB) Call Spread; Najarian Owns (XLI) Calls
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