NEW YORK (TheStreet) -- A possible biotech tech bubble and executive plans for cable consolidation dominated CNBC's Fast Money Halftime Report trading panel discussion on Wednesday.
But before diving into those two topics, the panel took on comments of Federal Reserve Chairwoman Janet Yellen, who earlier in the day said equity valuations were too high.
"We're cautious in the short run and long in the long run," said Fast Money panelist Rick Saperstein, chief investment officer of Treasury Partners. "We like the stock market but expect some sort of correction in the short run, given a lot of the global risks outstanding. For fixed income...we see short rates going higher, more than longer rates. This move in rates that is occurring right now is temporary."
In preparation for a correction in the markets, Saperstein said he would in financials, energy, home builders and the tech sector.
Meanwhile, Jim Lebenthal, chief investment officer of Lebenthal & Co., said he does not expect the Fed to embark on a series of rate hikes.
Questions of whether a biotech bubble is forming and on the verge of exploding was also covered by the panel, especially in light of Alexion Pharmaceuticals' (ALXN) massive $8.4 billion buyout announcement of Synageva Biopharma (GEVA).
"Expect a stream of deals," said Mark Schoenebaum, who heads up the healthcare research team at Evercore ISI. "We haven't seen an acquirer yet of a major deal that trades off and stays off...but if Alexion stays down one month after the deal, then it may (temper M&A) deals."