[Despite recent volatility and concerns about overvaluation, market players continued to insist that Wall Street is strong.] It's normal as the market rallies so strongly that we start seeing a correction and start looking for maybe even a 7 to 10 percent correction ultimately, ... But I don't think we're vulnerable to that right now. |
Because of the caution that I see right now, I would emphasize some of the more defensive stocks that are the bigger, stronger leaders in their areas; essential products and services; these tend to experience less than average volatility. |
Home Depot didn't suffer through the higher interest rates in 1990 or all those oil inflation fears and so forth, ... And the company is really a very strong company. Their momentum has accelerated so I think they'll sail right through (a climate of higher interest rates). |
Home Depot didn't suffer through the higher interest rates in 1990 or all those oil inflation fears and so forth. And the company is really a very strong company. Their momentum has accelerated so I think they'll sail right through (a climate of higher interest rates). |
I suggest the small investors dig in their heels with this market, not worry too much. The Fed really didn't cause a significant inflation problem. So far, this inflation pressure has been no worse than the worst it's been in the last several years. And each time it's been a great buying opportunity. Any time you can buy the S&P 500, the stock market index of the top 500 stocks, when its 7 to 11 percent off the all-time high, it's probably 2 to 1 odds. Given the history of super bull markets that we've had for 18 years in the two other of the century, that's going to be a fabulous buying opportunity. And if it's not, than you're probably half way down to the ultimate low and that's going to be an even more fabulous buying opportunity. |
I think [with technology] we had a two-year run that was fantastic and the Internet is off the front burner. It really is in trouble. You look at the top three market caps -- AOL, Yahoo!, and Amazon, the technical trends are very mediocre to negative. And that's true of most of the others as well in the Internet area. So I wouldn't be so hot on tech especially at this time of the year when risk taking is really not a good idea. This is the worst seasonal period of the year going into late September and October. Now we may have one more little move up to the summer rally highs, but I wouldn't be chasing it, |
I think bonds are appropriate for anybody that is close to retirement or is already retired and feels like they need that security and that defensiveness, ... appropriate diversification for a lot of people. But for people who are young and who can put money away for a long time, they really ought to be overwhelmingly in stocks. |
I think investors have got to be more selective than usual for a few reasons. There's really a broader leadership in the market. There are a lot of finance stocks that are acting great. And that wasn't the case over the last two years to three months ago. This is pretty recent. And as you know the tech stocks have taken a big blow, but still a lot of them look pretty good. So I would spread things out. Finance is my favorite area. I have about one-fourth of total stock holdings there. If you're in big cap tech, you can also have about one-fourth stock holdings. I think if you're in secondary or small cap, probably about one-fifth. Consumer cycles have gotten very choppy. Maybe about 12-to-15 percent of total stock holdings. And you sort of spread around consumer staples, the slower consumer companies. And health care has got some attractive areas, but it's pretty choppy too. |
I think investors should strongly invested, ... They should realize that doom and gloom and all of this talk of recession is typical of major market lows. I think they should realize that the average decline within these long-term 'super bull' markets is 19 percent. And we've been down 27-to-28 percent. It's a great time to buy. |
I think the market is going to all-time highs. It's hard to predict when it will happen, but this is a wonderful economy, you've got great economic growth. |
I think the technology run is going to continue quite a ways, ... [although] we can always have a correction. And indeed, we've already had something of a correction. [But] the Internet's been my favorite sub-group for a couple of years now. And trends tend to persist longer than people think. I think this is a powerful trend. It's a fundamentally sound trend. Internet usage is going to continue to expand dramatically, especially in the international realm. |
I would simply urge people to not get too distracted by the very, very short term. We all like to talk about the latest development and how it might change everything. But keep your eyes focused on the super bull. And the way that we could get derailed there just doesn't look likely at all. A monetary policy that throws in the towel in fighting inflation, that's far from the case. The Fed's been preemptive in trying to solve this inflation problem, |
I would simply urge people to not get too distracted by the very, very short term. We all like to talk about the latest development and how it might change everything. But keep your eyes focused on the super bull. And the way that we could get derailed there just doesn't look likely at all. A monetary policy that throws in the towel in fighting inflation, that's far from the case. The Fed's been preemptive in trying to solve this inflation problem. |
I'd stay focused on the idea that the economy will show firmness in the next few months, if not the next few days. |
I'm still super-bullish. I think the market's in a summer rally, about half along, towards all time highs. I expect minor all-time highs. No change in that view, |