The ISM report was good news in two ways. There's a big difference between contraction and a slowdown; and the number still showed expansion, |
The ISM report was good news in two ways. There's a big difference between contraction and a slowdown; and the number still showed expansion. |
The main reason that Alcoa is cheap is that all of the stocks in basic materials are cheap, |
The market does have a valuation problem, ... But I don't put much stock in any valuation model, including my own. It's very rational -- it tells you when the stock market is overvalued or undervalued -- but it doesn't work. |
The market does have a valuation problem. But I don't put much stock in any valuation model, including my own. It's very rational -- it tells you when the stock market is overvalued or undervalued -- but it doesn't work. |
The market is asking the question, given oil prices, given rates, given China's economy and other things, what does it look like for the economy and corporate profits in the fourth quarter and in 2005? The message we got last week was that it's probably not going to be as great as everybody once expected, but it will still be just fine. |
The market is not doing well. At long last, it is doing what it should do in responding to the rises in interest rates. |
The market is worried that the Federal Reserve will continue to raise interest rates well into 2006 and possibly make a policy mistake. If you look at housing starts they're very strong. Everyone knows the unemployment rate is low and the Fed is uncomfortable with that. |
The market needs to let earnings catch up -- wait until we get closer to the year 2000, when we can feel comfortable that the market is not overvalued. If the market stayed the same while earnings rose, then price-earnings ratios would be so darn high. |
The markets are getting a little nervous . On balance, investors want to see this president and the tax cuts preserved. |
The markets are moving to more reasonably reflect expectations for what lies ahead in 2005. |
The most important thing is that the stock market had declined to levels that were arguably undervalued, and that many aggressive managers also realized there was a great deal of pessimism. |
The numbers across the board were pretty surprising. I would say that improvements in the leading indicators of the economy, like the employment and manufacturing numbers, is very encouraging and indicate that the economy is expanding and not contracting. It also suggests continued expansion into the first quarter. |
The one thing you don't want to ignore is the stock market itself, |
The price is down some, but it's clear that oil is at a level that raises serious questions about the U.S. economy and earnings going forward. |