Thanks to China's decision, investors can buy emerging market stocks as well as copper, according to Tim Seymour, managing partner of Triogem Asset Management.
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The Chinese economy is obviously slowing, said Brian Kelly, founder of Brian Kelly Capital. The jump in commodities prices will be short-lived. He is a buyer of the iShares 20+ Treasury Bond ETF (TLT) and a seller of oil.
Investors have been worrying about a slowdown in China for years, said Guy Adami, managing director of stockmonster.com. So far those worries haven't come to fruition. However, Japan's economic issues seem worrisome and for that reason, investors can stay long the TLT exchange-traded fund.
The OPEC meeting is scheduled to take place Nov. 27. The question is, will OPEC decide to slash oil production? The group will likely want to push up oil prices, said Steve Grasso, director of institutional sales at Stuart Frankel. However, it seems unlikely OPEC will cut production. It will, however, make positive comments to push up those prices, he added.
Production will probably be cut by half a million barrel per day, Seymour said. The cut, while small, will probably be enough to give the oil markets a slight rally.
It looks likes shares of Schlumberger (SLB) are poised to break out, Adami said. He is a buyer of the stock.
Caterpillar (CAT) is a big beneficiary of Chinese economic activity. An analyst at Stifel Nicolaus upgraded the stock to buy and assigned a $22 price target. The company is a lot better than it was a few years ago, Seymour reasoned, but the global economy is not that strong. He is not a buyer.