Welcome to legal battle 2004. Probably unemployment will go down suddenly because so many attorneys will be hired. It's going to be a zoo. |
What concerns me is that the weakness in equity markets predates the war. The travel industry is having major problems, natural gas prices remain stubbornly higher and earnings growth has been very sporadic, ... The war is going to be a much longer and more involved process than people think. We are going to be under the gun, even when the conflict itself is over. If we don't see a dramatic recovery in earnings and a drop in oil once the conflict ends, these rallies that we have now won't be meaningful. |
What concerns me is that the weakness in equity markets predates the war. The travel industry is having major problems, natural gas prices remain stubbornly higher and earnings growth has been very sporadic. The war is going to be a much longer and more involved process than people think. We are going to be under the gun, even when the conflict itself is over. If we don't see a dramatic recovery in earnings and a drop in oil once the conflict ends, these rallies that we have now won't be meaningful. |
What's happening right now is that the markets are not able to discount the economic impact of Katrina. |
With technology stocks the watch-word is caution. What's happening now is that their valuations are reaching their earnings. Until we have those earnings catch up, any disappointments are creating huge volatility in the sector. |
Yesterday, a couple companies came in and surprised us. At this point in time, I'm inclined to take profits. I feel that we are fairly valued. |
You have to really look at them. No. 1, we're not buying into the fact that earnings are going to be dramatically up. So what we are looking for is companies that are selling with the low P/E ratios, have decent balance sheets, and paying decent dividends to begin with, ... They all pay very generous dividends, while we're holding on. |
You've got the warm and toasty economy, or the Goldilocks economy, still in place, |
You've got the warm and toasty economy, or the Goldilocks economy, still in place. |