NEW YORK (
) -- Are stocks underowned?
Ron Insana said on
's "Fast Money" TV show on Thursday that money has been having moving out of equities for some time even as the
has been telling investors to be in risk assets.
Since 2007, $330 billion have flowed out of stock funds, while $114 billion has moved into bond funds and $475 billion have poured into money market funds.
Insana said that retail investors have simply got it wrong in a market that has moved up 80% since March 2009.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
3 Stocks I Saw on TV
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Tim Seymour said the flows will return to stocks with attractive valuations and dividend yields being the driving forces.
Joe Terranova said there needs to be a reallocation of capital from the fixed income funds to equity mutual funds. He said that allocation is needed to drive the market higher.
Melissa Lee, the moderator of the show, pointed out that
is underowned despite its stellar growth and huge market cap.
Options trader Mike Khouw said it's difficult for investors to chase Apple because of the difficulties of estimating what it can achieve as a growth company.
Lee brought in Carter Worth, a chartologist with Oppenheimer Asset Management, to talk about today's down market action. He said the market is likely to go sideways and lower in the near term.
He attributed the pullback to unhappy shareholders who are taking their money back after seeing the market return to the highs it established last May. He also said it may be due to investors deciding to pocket gains from the recent rise in the market.
Moving to specific stocks, Worth said he would be a buyer of
as he sees it rebounding after finding support. But he said
Kinder Morgan Energy Partners
has risen to unsustainable levels and is under selling pressures.
Lee moved to
, which moved lower after posting a good quarter but a "problematic" guidance.
Seymour said Starbucks had a great run during the holiday season but now has to show it can continue that growth. Terranova was worried about the impact of higher coffee prices.
Marc Riddick, a senior analyst with Williams Capital Group, said Starbucks reported a strong top line, raised the lower end of its guidance and reiterated a 20% sales growth for the year. Riddick, who has a buy on the stock, said Starbucks should be a core holding for large-cap investors because it offers long-term global growth.
Lee noted that
was up more than 18% after its profit outlook tops estimates. Finerman was wary of the stock's valuation because it had priced in a lot of good things happening. She also said there might be a squeeze on the stock, which has a big short interest.
Khouw found it difficult to believe the retailer's story about growth being driven by declining revenue, declining earnings and talk of declining margins.
, Jon Najarian commented on the carrier's record smartphone sales. He said the big surprise was that iPhone sales topped those of the Android, with iPhone sales accounting for 7.6 million of the 9 million phones sold.
Lee shifted to the airline sector and
, which was up 4% after reporting better-than-expected earnings.
Jetblue CEO Dave Burger said the airline's strong revenue growth in 2011 bodes well for 2012. The airline reported profits tripled to $23 million for the quarter from an 11% increase in traffic.
He also noted that Jetblue has a partnership with Hawaiian Airlines to offer direct flights from New York to Hawaii.
Terranova said the airline was doing a good job of controlling costs, increasing revenues and expanding margins.
Lee asked the panel to come up with some casualties of the
's ultra-low rate policy. Insana said the low rates will make it a very difficult operating environment for insurance companies. Terranova said the low rates mean the trade in banks is over as they look for the next catalyst. Seymour said the low rates will lead to a weaker dollar and have a negative impact on euro.
Richard Reptte, principal for Sandler O'Neill, said the low rates will take a toll on the net interest income of ebrokers like
. He said Etrade will face problems with loans that have to be reset at a lower rate.
In the final trades, Seymour liked
. Insana said he was a buyer of the S&P. Finerman liked
, while Terranova favored
Written by David Tong in San Francisco.
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