1. SAC Capital Charged with Insider Trading
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FBI Investigators say there was systematic insider trading going on for more than a decade at SAC Capital. Do they have a case? The Wall Street Journal’s Spencer Jakab says the fact that the federal jury indicted the firm – and not Steven Cohen – says maybe not. Seaport Securities’ Jason Weisberg weighs in on SAC’s investment strategy, and whether the company was consistently trading on inside information.
2. Should You Buy Small-Cap Stocks?
While the market as a whole is on a tear, small-cap stocks are doing even better, up more than 23% so far this year. But will the streak continue? A&G Capital CIO Hilary Kramer says you should buy more small-cap stocks, because so many investors haven’t yet discovered them. Kramer says fallen angels also provide an opportunity for savvy investors. But Real Wealth Network CEO Kathy Fetke says she doesn’t like to buy at the peak, and investors are better off buying real estate right now.
3. How Can We Fix Detroit?
While Detroit begins the stages of bankruptcy, Rep. Dan Kildee (D-Mich.) says the government should consider supporting cities to prevent future bankruptcies. Rep. Kildee says Detroit has experienced a continuous decline over 30 to 40 years, fueled by bad policies like NAFTA and bad trade agreements. He says local government failed the people of Detroit, but at the state and federal level, the residents of Detroit are not guilty – and shouldn’t be penalized.
4. How to Profit Off Real Estate
OwnAmerica.com CEO Greg Rand says you can’t blame people for having a loss of faith in the real estate market given the past five years’ performance, but he says the single-family home is the most direct investment you can make today. Realtor Tanya Marchiol says it’s less expensive to buy than it is to rent in the biggest cities in the U.S. She says people are starting to realize it’s once again time to buy a home, especially given the fact that lending is starting to loosen up.