NEW YORK (TheStreet) -- The Federal Reserve finally announced that it would begin tapering its asset purchases under quantitative easing. Investors cheered the move as the S&P 500 closed at all-time highs.
On CNBC's "Fast Money" TV show, Tim Seymour, managing partner at Triogem Asset Management, said the Fed's decision removes a big headwind for investors and provides a lot of clarity, something market participants love.
Karen Finerman, president of Metropolitan Capital Advisors, said the Fed has done a great job and the economy has been improving nicely. She added her hope the Fed sees continued economic improvement.
Dan Nathan, co-founder and editor of riskreversal.com, noted the CBOE Volatility Index (VIX.X) dropped 15% on Wednesday and added that a lot of managers use it as a cheap form of portfolio hedging.
Seymour said emerging markets should do well going into next year. He suggested the Market Vectors Russia ETF (RSX - Get Report) and the iShares MSCI Brazil Capped ETF (EWZ - Get Report) for investors who want a "high-octane" trade.
Finerman said she plans to stick with the financial sector, which should benefit from improving asset and housing prices, along with a better economy.
Tom Lee, chief U.S. equity strategist at JPMorgan (JPM - Get Report), was a guest on the show. He said equities look likely to rally into year's end. He added that profits could increase by double-digit percentages and equities still look cheap compared to bonds. Lee's top sector picks for 2014 include financials, large-cap technology and health care.
Seymour said Apple (AAPL - Get Report) traded well on Wednesday despite not yet having a deal with China Mobile Limited (CHL). He thinks AAPL needs CHL more than CHL needs AAPL because CHL has Samsung and other cheap smartphone makers to drive sales.
Nathan said LinkedIn (LNKD) hit five-month lows but held its 200-day simple moving average. He suggested investors move out of highly speculative names and into cyclical and industrial stocks.
Seymour added that nothing would change for Ford in the intermediate term and suggested that investors buy the weakness.
Stephanie Cordisco, president of R.J. Reynolds Vapor, was a guest on the show who said the e-cigarette business has a ton of growth potential. While it will cannibalize some of the tobacco companies' cigarette sales, it does have higher margins. She added that e-cigs only make up about 1% of the cigarette market, but its popularity is growing quickly.
Seymour liked Lorillard (LO), especially over the long term for e-cig exposure. He added that e-cig regulation risks are being overblown.
VeriFone Systems (PAY) fell 7% and Nathan said the company needs growth from emerging markets before investors should step back in as buyers.
Finerman is long the SPDR Biotech ETF (XBI - Get Report) and the iShares Nasdaq Biotech ETF (IBB - Get Report) because the sector should continue to outperform. Using ETFs will provide diversification in what can often be a dangerous sector to own individual stocks, she added.
For their final trades, Nathan suggested selling 3D Systems (DDD - Get Report) and Finerman is a buyer of Timken (TKR - Get Report). Adami said to buy Jabil Circuit (JBL - Get Report) and Seymour is buying RSX.
-- Written by Bret Kenwell in Petoskey, Mich.