Looking back at other negative events such as Sept. 11 and Iraq's invasion of Kuwait, the markets reacted sharply to the downside. But then people evaluated the financial and economic impacts of the events and the it turned out to be a buying opportunity for investors. Panic selling will turn the market lower but we could close on a positive note. |
Many say this much-needed digestion of gains is long overdue, as bull markets typically require a correction of more than 10 percent in order to allow the bull to maintain its upward tendencies. |
Microsoft is not the company of my dreams at this point in time, |
Not all tech stocks are cheap, ... The question is how far down can the Nasdaq go. |
On average, coming out of a bad September, October rises 5 percent and the fourth quarter rises 4 percent overall. So if you use history as a guide, we're looking for a bounce. |
Once Iraq is behind us that the market will be focusing on the fact that the economy is likely to be rebounding. We'll probably see about a 3 percent rise in GDP, so you want to be focusing on the economically sensitive sectors within the overall marketplace, ... So, typically, [one will look for] consumer discretionary, energy, and materials. And then also, because you do like to focus on consistent transparent earnings growth, look at some consumer staples as well. |
Our feeling is that energy stocks will be good performers, ... While inventories seem to be in balance with demand now, we see that as being temporary, that demand will soon start to outpace supply this summer. |
Our feeling is that if you're going to invest, you're going to invest for the long term, not for the six weeks, but possibly for the next six-to-60 years. So you really have to go where the longer-term growth happens to be. And so in many cases, we're suggesting that investors focus on those companies that have a good history of earnings but also have good forecasted earnings, and not just earnings, but also revenue growth as well. |
People are moving away from tech and moving toward more attractive valuations -- I would regard that as a positive sign because investors are at least staying in the stock market. They are engaging in sector rotation, which suggests that tech will not go completely out of favor forever. |
Possibly we could see a little bit of profit taking because investors had been anticipating that when the Fed does meet next week that they won't raise interest rates, |
Right now there's still that tug of war that is going to be going on between those people who feel optimistic about the Fed's aggressive rate easing and those who say that earnings look bleak and expect to look bleaker, ... If the Fed is not gauge to meet until the end of March, we have this pretty long stretch until we get another shot in the arm with lower interest rates. |
Right now there's still that tug of war that is going to be going on between those people who feel optimistic about the Fed's aggressive rate easing and those who say that earnings look bleak and expect to look bleaker. If the Fed is not gauge to meet until the end of March, we have this pretty long stretch until we get another shot in the arm with lower interest rates. |
Six-to-12 months down the road, the tech stocks will still outperform the market, |
Six-to-12 months down the road, the tech stocks will still outperform the market. Our favorite group right now is the semiconductors. We're in the beginning phase of their multi-year growth. |
Some of the restaurant companies are doing exceptionally well and I think demographics, longer term, are going to indicate that more people are going to be buying their food outside the home, rather than preparing it inside the home, |