During periods of sluggish economic activity, spotting segments of growth and commercial opportunity often can make the difference between an adequate return on equity, and a portfolio with decidedly less-impressive results. Further, due to the fact that air traffic growth should outpace global GDP growth in the immediate years ahead, aircraft leasing represents an opportunity, and in this category Genesis Lease is worth a review.

Genesis Lease (NYSE: GLS) is an aircraft-leasing company with worldwide operations and a blue chip list of customers. The company has a 15-year service agreement with General Electric (NYSE: GE) Commercial Aviation Services whereby GECAS will service GLS' leases so that Genesis can concentrate on growing its business.

Analysts like GLS' overall business model, plan to expand its lease fleet of 52 aircraft, favorable sector position, and pricing power. The Reuters F2007/F2008 EPS consensus estimates for GLS are $1.25/$1.39.

TheStreet.com's Jim Cramer highlights the latest example of how people were scared out of the market at exactly the wrong time so you won't get spooked next time.

When Sowood and the Bear Stearns (NYSE: BSC) (Cramer's Take) leveraged investment funds blew up this summer we were supposed to get ready for a wave of redemptions that would buckle the market.

"Just wait until October" became a familiar refrain as hedge funds were expected to get shelled, causing tons of stocks not to trade the way they should as unnatural margined selling took its toll.

But here we are in the first week of October and spreads for arbitrage, a pure tell for fund redemptions, are tightening, not loosening. The averages are at or are close to hitting new highs and we haven't heard of any funds about to go belly-up. The only ones that would fail, I believe, would be short funds.

I bring up this sore but positive topic because when things were really bad at the end of August yet redemptions hadn't overwhelmed the market, we figured it might just be a September phenomenon. Making things a little more likely, too, were the funds that were exposed to all of these exotic instruments based on mortgages.

So far it looks like the huge hedge fund redemptions and failures aren't going to happen, perhaps courtesy of the Fed's rate cuts that now do seem to have bailed out a lot of managers who have made wrong moves. That's the "moral hazard" that everyone was fretting about so much before the Fed acted.

But I think that instead, you should let this memory of "redemption worry" be a reminder of the phantoms that freak people out and make them leave the market at what now represents 1,000 points on the Dow.

Oddly, there are still some stocks that seem pressured down more by fear than by fundamentals. Genesis Lease (NYSE: GLS) (Cramer's Take) and Aircastle (NYSE: AYR) (Cramer's Take) both have terrific yields, a function of the decline in the stocks of aircraft lessors. Some of these are owned from hedge funds believed to be struggling. The other is Enterprise Product Partners (NYSE: EPD) (Cramer's Take), also with a good yield, that is in the energy transport business.

Neither industry is hurting but the stocks had some really weak hedge fund hands as shareholders.

These could be payoffs from the distressed period and redemption fears that drove them down.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Citigroup.

MOST NOTEWORTHY: The exchange sector, Progenics Pharma, Tyco Electronics and PharMerica were today's noteworthy initiations:

• Keefe Bruyette initiated coverage on Exchange Sector: The firm started shares of CME Group Inc (NYSE: CME), NYMEX Holdings Inc (NYSE: NMX) and NYSE Euronext Inc (NYSE: NYX) with Outperform ratings and a $669 target, $147 target and $90 target, respectively. The firm also started shares of Investment Technology Group (NYSE: ITG), Nasdaq Stock Market Inc (NASDAQ: NDAQ) and IntercontinentalExchange Inc (NYSE: ICE) with Underperform ratings and a $47 target, $36 target and $158 target, respectively, and shares of Knight Capital Group (NASDAQ: NITE) with an Underperform rating and $13 target.
  
• Progenics Pharmaceuticals (NASDAQ: PGNX) was added to Friedman Billings' Top Picks list and its Outperform rating was maintained. The firm has a high degree of confidence in the success of the MNTX Ph III studies in post-operative ilieus, as well as the FDA approval of the subcutaneous injection in terminally ill patients with opiod-induced constipation around the 1/31/07 PDUFA date.
• RBC believes margin expansion will drive long-term appreciation in Tyco Electronics Ltd (NYSE: TEL) and started shares with an Outperform rating and $41 target.
• PharMerica Corporation (NYSE: PMC) was initiated with an Underperform rating at Bear Stearns. The firm believes PMC will be pressured by customer losses and generic reimbursement cuts and sees shares trading in $12-$13 range.

OTHER INITIATIONS:

• Ryanair Holdings (NASDAQ: RYAAY) was initiated with a Market Outperform rating at Avondale.u
• Banc of America initiated shares of Town Sports International (NASDAQ: CLUB) with a Sell rating and $15 target.
  
• Goldman started shares of Genesis Lease Ltd (NYSE: GLS) and Aircastle Ltd (NYSE: AYR) with Neutral ratings.