In earnings season especially, people will tend to ask first and analyze later. So I think what investors should be doing is looking at the earnings reports beyond the headline numbers. A stock may be off sharply for a temporary reason, a shortage of a component that is a terrific buying opportunity. A stock may rocket up again for a non-recurring factor that is a chance to sell. Investors should just take advantage of the opportunity to sit back and capitalize. |
Is there any reason to really believe we're going to be in a severe recession, or have a terrible inflation problem? I'd say the answer is no. On that basis, the stock market still looks like a pretty interesting place. |
It's only a matter of time, |
Obviously, this company is a big user of energy. Oil shouldn't have been at 11 a year ago. It shouldn't be at 34 now. It will eventually settle at a price that will let UPS do very well. |
Pretty much 90-percent of their travel party has never been to New Jersey. So it?s kind of fun to sort of help out a little bit. |
Retailers are probably a pretty good group, |
Retailing is probably a good idea, [as well as] companies like United Parcel that does tie into better consumer spending, better improving economic activity. I think you definitely want to be pro-cyclical. This is not the time to get defensive. |
Some of the 'new economy' stocks are looking a lot more interesting these days. I think some of the biotech stocks might be worth a look. That's a big, big area, with all the developments there. There are a lot of new products coming out. |
The common them there is both of them have a lot of exposure to natural gas, which will be a big play in energy. They've done pretty well. But I think if you're a patient investor and are looking out a couple of months, you'll do well in them. |
The thing that's weighing on the stock market is the bond market, ... That's because bond investors are convinced the party in the economy is getting too boisterous, the (Federal Reserve's) going to come in and take the punch bowl away, and I think that might keep stocks under wraps here. |
Two sectors that have taken a terrible beating here over the last couple of months that we think have terrific long-term prospects are technology and biotechnology. A lot of those stocks are - even though they've bounced back here in the last couple of days - still down 50 percent from where they were only a few weeks ago. |
We think some of the retailing stocks are interesting, ... The tax cuts will be spent on companies like Home Depot or maybe Tiffany. |
What's going to drive prices in the end is earnings, |
When the sentiment changes, we could probably get a pretty good rally, because that is what we're talking about, sentiment. The fundamentals are looking fine. |
When things go wrong, people just want action and this is action in the form of a deadline, ... It does remind people that not every corporate executive is not being less than forthright with their statements. |