Fish: Welcome to TeenStockTrader.com, this is our first edition of Conversations with Rich and Fish
our first topic will be the recent downfall of the stock market

Fish: as there is much reason for the correction, it came out of no where, and i think part of it has to do with the technicals

Rich: I think it has more to do with the Fed being behind the curve when it came to cutting interest rates a few months ago and now after cutting rates too late, they have weakened the dollar

Fish: yes, your right, because a change in interest rates only takes effect long after they are changed

Rich: and with even though oil prices are rising, there are still great investments in the stock market that are being downplayed by the Feds negative reports concerning CPI numbers

Rich: Also, each time the Fed cuts interest rates they cause an artficial rally in the market that only brings on another correction two or three days later.

Fish: yea, but do you really think the market should have corrected this much

Fish: thats the thing about the stock market, it always leans too much one way

Rich: I do not think the market should have corrected at all, these corrections were caused by speculation concerning interest rates, inflation and energy prices. The stock market is still healthy, investors aren't seeing that because their view is blocked by reports about economic worries.

Fish: yea and it's the same economic worries that we have been having

Rich: Employment may be down and energy prices may be high, but this isn't the worst that the U.S. economy has seen and it will comeback

Fish: so its not like its anything different

Fish: where do you think oil prices will be a year from now

Rich: One year from now, oil will be $200. This summer, oil will be $150

Fish: wow, but this economy won't do too good with prices at those levels

Rich: Investors have to stop waiting for oil to come down and they just have to get back into the market. Oil isn't coming down whether anybody likes it or not. America has an oil crisis on its hands and in the next 40-50 years or maybe longer, but not much longer, oil will run out

Rich: I have seen numbers come out indicating less demand for oil right now, but in the long term we do need oil demand will continue to go up until we find reliable alternate energy sources and as long as demand continues to rise, so will prices because in the long term supply is going to fall

Fish: your right and the only way we can come out with those alternative energy sources that actually work is if we leave it up to the free market to work its magic and not the slow moving government

Rich: The current oil alternatives are working, but the prices aren't. Ethanol, first of all, is a joke. So forget about that one. Solar and wind are the only ones with a future and currently they are too expensive for the average consumer. We need the homebuilders to start building homes with solar panels on them..All homes. Once these products start being used more and more companies start making them, prices will go down and then we can start to move away from oil

Fish: and we should mix that with more nuclear energy

Rich: Yes, nuclear energy too, except that will have a negative impact on the enviroment and since the trend currently is "going green", solar and wind will be the favorites among consumers

Fish: of course

Rich: Ok, so what are your picks for solar and wind plays?

Fish: i dont focus too much on those but maybe evergreen solar

Rich: I only have one for solar and one for wind. For solar, my pick is (TSL) Trina Solar and for wind, my pick is (TRN) Trinity. Also, if you want to try a Nat. Gas play, my pick is (EP) El Paso Corp.

Fish: yea, nat gas is going to be rockin this summer

Rich: Also, at the time of this writing I do not own any of those three companies.

Fish: dont you think that when this market starts goin one way, it doesnt stop for a while

Fish: thats how i missed the big correction a while ago

Rich: Yes, long term we are in a bull market. Right now we are in a pull back but long term this market is going to go up and I think within the next 2 years we will see Dow 14,000 again

Rich: maybe in the next 1 year even

Fish: well yea, 14000 isn't that hard to reach

Rich: 14,000 won't be hard to reach, once we put this crisis behind us

Fish: yea, and the global telecoms have gotten hit hard and i think there are good opportunities there

Rich: Oh and I don't have a telecom pick right now...

Rich: oh wait AT&T

Fish: i love this stock Telkom South Africa (TKG), it is so undervalued even after it has gotten bids for it
and i own it

Fish: its important asset is 50% of mobile operator Vodacom, where Vodafone owns the other half and want to buy more of it

Rich: Also, for the phone end of the industry and not the service provider end, I like AAPL and RIMM. I think Apple doubles by next year.
I do not own either of them currently

Fish: yea the new iphone is a smash, they hit both ends with the cheaper price and more features

Rich: Yeah, and their ichat is the future of communicating online. It will make IM obsolete

Fish: yea thats what i use, ichat

Fish: alright, so bottom line is that the correction is uncalled for and the market should be propped up very soon
thanks for reading the first Conversations with Rich and Fish