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Pros Say: Interest Rates Threaten Equities Markets

Stocks opened higher on Tuesday with bank stocks rising as some of the nation's largest institutions poised to repay government bailout money. Ten banks are set to repay capitalthey received through the Troubled Asset Relief Program. The companies are expected to give back some $68 billion, about twice what the government expected. Read and listen to what the experts had to say...

Short and Build Cash on Junk Companies

“If Fed rates continue up much further, it will have a significant effect on the equity market,” said Harry Rady of Rady Asset Management. He said the equity market is vulnerable and there are many opportunities to short and build cashon second and third tier "junk" companies.

US Will Be ‘First Out of Trouble’

The U.S. market was “first in trouble and will be first out of trouble,” said Brian Belski of Oppenheimer. He said America's economy and markets are at least 12 to 18 months aheadof other markets, with respect to the recovery in terms of fiscal and monetary policies.

Investor Spring Cleaning - A CNBC Special Report
Investor Spring Cleaning - A CNBC Special Report

Interest Rate Worries Continue

Former Federal Reserve Board governor Frederic Mishkin said that there’s a problem for both the monetary policy and the economy going forward. He said people are worried that when the Treasury dumps their debt in the future, interest rates will increase which will lead to higher mortgage rates.

US Will Beat China to Recovery

Roger Nightingale from Pointon York said he believes the US economy is “looking the best in the world at the moment” and that the idea the Chinese economy is stronger seems “bizarre.” He said the US will see some growth in 3 to 5 months.

Hyundai on Potential Chinese Competition

John Krafcik of Hyundai USA said he is not worried about Chinese brandscompeting for market space in the U.S. “It took us 23 years to get to where we are right now—we’re the 5th largest auto company in the world, 7th best selling brand in the U.S.—but we still only have a 4 percent market share. So imagine how long it will take Chinese car brands to catch up. If they do come to the U.S., we think it will come through existing channels,” he said.

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CNBC's Companies in the News:

Morgan Stanley

American Express

  • Morgan Stanley, AmEx Lead TARP Repayment Pack

General Electric

  • GE Aviation Sees Orders Down 50% in 2009

General Motors

Bank of America

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