'Fast Money' Recap: Forget Greece, Worry About the Fed Meeting

NEW YORK (TheStreet) -- U.S. stocks started off the week under pressure, with the S&P 500 down roughly 1% on Monday morning. However, by the end of the day, stocks had cut their losses in half, despite continued concerns over Greece's debt issues. 

According to Jay Pelosky, senior global macro strategist at J2Z Advisory, there's several ways this can pan out. He said during CNBC's "Fast Money" TV show the best-case scenario involves Greece reaching a debt deal with the International Monetary Fund, European Central Bank and European Union. This will likely draw a small reaction from U.S. stocks and a modest 2% to 4% rally in European stocks. 

In his worst-case assessment, Greece will default, not renegotiate new terms and will ultimately exit the eurozone. This will likely weigh on U.S. stocks, pulling them lower by approximately 2% to 4%, while Europe stocks drop 5% to 10%. 

Guy Adami, managing director of stockmonster.com, said U.S. stocks are trading relatively well, given the current status of Greece and its default possibilities. He also reminded investors that the Federal Reserve has a meeting this week. 

Turning his attention to German equities, Adami said investors should buy the DAX aggressively if it drops to 10,500. 

Tim Seymour, the managing partner of Triogem Asset Management, said despite the noise being made about Greece, the Federal Reserve meeting is the most important event this week. Investors should plan on a rate hike in September and should consider investments in commodities, growth stocks and emerging markets as a result.

Investors seem to be okay with the notion of a Fed September hike, according to Dan Nathan, co-founder and editor of riskreversal.com. His assessment is based on stocks still trading near record highs even with the assumption rates will increase in September. 

If rates do increase in September, investors should be invested in the sector that will benefit the most: Financials. Specifically, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said to buy JPMorgan Chase  (JPM). 

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