Morgan Stanley is perhaps the best stock to buy at this time of economic turmoil. What sector will benefit the most from the bailout passing and increased investor confidence? Well the financial sector: It is the most undervalued sector and will likely get the most out of increasing investor confidence. Full Story: http://fiscalfrenzy.com/MS_rec

It was a decent day for some trading opportunities, almost too many opportunities that it was hard to catch anything at the right time trying to follow so many different stocks. As well by mid day as we were up around 600 points i was skepticle to see the market continue higher. Yet i guess we can’t be surprised by anything in this current market environment.

Taipan Daily editor Justice Litle says it’s likely that “we’ll see the price of stocks, commodities and paper assets in general explode into the stratosphere.”

Hank Paulson wants to spend $700 billion to buy up banks bad debt in the hope it can ‘fix’ the crisis on Wall Street. But there are ways to profit from the madness. Martin Hutchinson has picked three winners.

Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), the two last major investment banks left standing after the carnage Wall Street, have ended the era of investment banking by changing their status to bank holding companies. The change means the two firms can now create commercial banks that will be able to take deposits.

The lesson to be learned from Wall Street’s hubris, says Eric Fry at Rude Awakening, is that although stocks can be ruined by over zealous management, commodities cannot. Stupidity is not a risk factor in the commodities sector. And this makes them attractive despite their recent selloff.

Bottom line: The current rout in financial sector shares might smell awful to the simple onlooker. But smart investors should know that it smells like the beginning of the end of their collapse, too.

Morgan Stanley's earnings dropped 57 percent in the second quarter as revenue from asset management and investment banking declined while equities and fixed-income traders generated less profit.