[But stock strategists remained fairly optimistic, that the volatility that sent blue chips within grasp of a three-month low last week created buying opportunities.] The particular bullish case for the blue chips here is that they've really had a correction over the last month or so, ... I look for the blue chips to catch up with the rest of the market and make new highs later this month. |
[Stocks are in the middle of a retreat that has lasted nearly two weeks.] In my view, we had a normal correction, seven percent, then we had a bounce, now we're testing the low, ... The bond market's actually doing better. That's a good sign. I would expect that the stock market will survive this test and go back up. |
A really good bottom looks a little bit like it did last Friday and Monday, but then has follow through, it doesn't just sort of sputter out. I'm a little bit concerned, in the short-run, that there's downside risk. |
A stock like Microsoft has a history of splitting, |
A stock like Microsoft has a history of splitting. It's not the split that makes Microsoft a success. It's the success that makes the split. |
Analysts are not way off the mark anymore, so companies don't have to talk them down, |
But the market is not cheap, ... So if you're playing, what should you be playing? GE, I think, is a core holding in anybody's portfolio. |
Cheap is a relative term. In terms of price-to-earnings ratios, some of these stocks are still high. |
During an election year, the Fed likes to stay out of the headlines. |
Everybody is in a pretty reasonable state of confusion. |
free and easy monetary environment. |
Historically, markets are much more interested in things like how the economy is doing and what interest rate policy is than who is in power. |
I don't think, even with the economy a bit better, that we've crossed the inflation threshold. But we're operating pretty near full potential and that is why the markets are so sensitive to these economic news events. |
I think investors should be back in the market. The direction is up from here. |
I think they probably should have canceled this week for lack of interest. |