Patrick M. Fitzgibbons Chats on AOL, June 26 - TheStreet

Patrick M. Fitzgibbons Chats on AOL, June 26

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Patrick Fitzgibbons chatted on AOL MarketTalk on Monday, June 26. AOL's MarketTalk is hosted by Sage Online (Keyword: PF Live).

OnlineHost:

Live from New York, N.Y., please welcome Pat Fitzgibbons, markets editor,

TheStreet.com

.

OnlineHost:

Pat can answer questions about the markets and investing. Pat does

not

offer individual stock commentaries or recommendations.

SageMoola:

Good afternoon and welcome to MarketTalk, Mr. Fitzgibbons!

Pat Fitzgibbons1:

Hi everybody. Hopefully we can make some sense into what's turned out to be a pretty good rally for the day.

Question:

Do you think there will be another interest-rate hike on Wednesday?

Pat Fitzgibbons1:

It's still not really clear what the

Fed

is going to do on Wednesday, but most people we're talking to don't think the Fed will do anything this week.

Pat Fitzgibbons1:

Interestingly, we're starting to hear a few people say that the Fed may be done raising rates. We'll have to watch going forward.

Question:

Is the fiber-optic sector a good place to invest?

Pat Fitzgibbons1:

Like the other sectors, it's important to sort of identify individual names in the sectors before you invest. I think while last year with the market going up almost all the time, or so it seemed, you could invest more in sectors.

Pat Fitzgibbons1:

Now, I think it's more important to identify names in those sectors and take a look at different valuations of some of the top names before you make a decision of where to put your money.

Question:

BMCS (BMC Software) suffered a huge loss for no apparent reason. They seem on the road to recovery but are still down. A weakness due to Nasdaq or something else?

Pat Fitzgibbons1:

I can't make recommendations on individual stocks, however, it is possible that that sector has come under some stress recently. But I wouldn't attribute it to Nasdaq overall weakness, as the Nasdaq has come back pretty much to where it was to start the year. And it also may be that during the summer, when volume is light, it may sort of be an underappreciated name right now.

Question:

What does the biotech Biogen (BGEN) do?

Pat Fitzgibbons1:

Biotech companies typically are doing research at the very basic levels of cells and cell reproduction to find new cures for diseases. A company like Biogen, for example, would be doing a lot of investigating of cures for specific diseases.

Pat Fitzgibbons1:

A lot of the ones that have come up recently are cancer cures, diabetes drugs, Alzheimer's drugs, those sort of chronic ailments. So it's very important when you're investing in these kinds of names that you know what sort of drugs they have in their pipeline and how likely it is that those drugs are ever going to get approval.

Question:

In what way is the jobs report the most important economic indicator?

Pat Fitzgibbons1:

I think you can argue both sides. That it is and isn't. Like most economic indicators, it's a big deal when it is meaning before every economic indicator comes out there is a consensus created by economists and the market expects it to fall in that range.

Pat Fitzgibbons1:

It's a big deal when it beats or misses those estimates by a lot. I think that the employment data is very important and has been the last couple of years because it is so strong and reflects how few unemployed people there are.

Question:

Which sectors do you find most attractive at this time?

Pat Fitzgibbons1:

I think that if the Fed finishes raising rates, then there's some upside for the banking and brokerage sector. Then I think software will continue to be strong. I also think there's a lot of upside in some of the Internet companies, although it's an exceptionally risky play.

Question:

How do you feel about investing in foreign markets? Any of that look good?

Pat Fitzgibbons1:

It's very important when you're investing in foreign markets to do some level of research. And be aware that a lot of countries don't have the same regulations that the U.S. has as far as how companies do their business.

Pat Fitzgibbons1:

And as I'm sure the participants could tell from my last name, that I would heavily invest in Ireland, especially in Guinness futures. :)

Question:

Do you think Lucent will make any moves toward developing business in Brazil, now that they are deregulating telecommunications there?

Pat Fitzgibbons1:

I think Lucent and a lot of other companies are going to benefit from the deregulation in Brazil. I think that any company worth its salt would be looking to broaden its business there, and I think Lucent will be one to make an attempt.

Pat Fitzgibbons1:

I don't know if they've said as much, but companies like Lucent, Microsoft and Intel that have been around for a while know what they have to do to expand into foreign markets and that has been one of their keys for success.

Question:

How do I begin investing in foreign markets?

Pat Fitzgibbons1:

The first thing that you have to do is find out what exactly you are able to invest in. And it may be necessary for you to sit down with a financial adviser or planner just to decide what sectors or what countries are best for you to hop in on.

Question:

What effect do you think last week's OPEC meeting results will have on the markets?

Pat Fitzgibbons1:

I think that anytime that uncertainty is removed from the market it's a good thing. I don't think what OPEC announced will have a lot of effect on oil prices right now, but it does show a little bit that they're willing to increase production to some degree.

SageMoola:

Thank you very much for joining us today, Mr. Fitzgibbons!

Pat Fitzgibbons1:

Thanks for all the good questions and I'll see you on TheStreet.com.