That really says investors are getting impatient with the turnaround in the technology sector. |
The big question is whether (the gains of April) were the beginning of a sustainable rally. My sense is it's probably too soon for that. |
The Dow is more a barometer of the economy and not so much the stock market. The photography sector isn't all that crucial to the economy. |
The Dow would be trading noticeably higher, |
The earnings rebound keeps getting pushed out further. |
The issue is: Things can't get any better for the group. |
The silver lining is that may have compressed the pain. |
There has been turnover of more than a third of the companies in the past few years. I don't think there is any pressing need to make more changes right now. |
There is a distinct possibility you will see more very large tech companies paying a dividend. It's a reflection of the continued maturation of these companies, |
There's going to be a realization that corporate profits will be improving. |
There's increased speculation that the Fed will be cutting interest rates between meetings. |
This thing has come pretty far, pretty fast. |
Those [stocks] are the ones where you haven't had any pre-announcements. |
To me a broad-base rally is what you need right now. Breadth like this is good because it means people are willing to put money into a variety of stocks. |
Valuations are getting stretched, especially in the technology sector. There may be some recovery in the economy, but the notion that it will translate into a big jump in corporate profits - the jury is still out on that. |