A P/E is meaningless by itself. A P/E has to look at the price you're paying for earnings but you have to compare it relative to something, ... Companies with low P/E's also tend to be the companies that have the lowest prospects for growth. |
A P/E is meaningless by itself. A P/E has to look at the price you're paying for earnings but you have to compare it relative to something. Companies with low P/E's also tend to be the companies that have the lowest prospects for growth. |
I think the market is going to be in a position to rally going into the events of next week, |
I think the market is still struggling with issues related to the global war on terror, as well as oil prices, but it's a myopic view, |
I think we go nowhere for the next three weeks in terms of a real move in the markets. What's going to carry us is reduced uncertainty relative to the Fed, very good numbers on the economy and very good earnings as we wind up the year. |
If the Fed is just neutral, what's really going to move the market higher is more progress on the earnings front. You're going to want to be overweight in those companies that have the greatest underlying earnings growth, and that's technology, |
If you've got significant profits in a stock like Cisco, it does make some common sense to move money out of there into groups such as pharmaceuticals as a short-term trade. This is more of a rotation rather than anything else, ... Until the Fed registers its vote at the end of August, I think you just see more of the same - a lot of churning and going nowhere fast. |
It has nothing to do with an election year. We believe the underlying earnings are what really count. |
Oracle had gotten to valuations that it probably didn't deserve yet and the sell-off is a reflection of concerns over valuations. It's still a very good software company. We expect a little slower revenue growth but overall, they are an impressive company. |
Right now the market is digesting some very good gains it's had over the last year, |
The days of multiple expansions due to falling (interest) rates are largely behind us so when it comes to portfolio management, the old strategy of just 'buy the index' doesn't work anymore, ... What you're really coming down to is going back to a very old fashioned stock-by-stock approach to putting together a portfolio. |
There's a growing realization that technology is where earnings growth is going to show up. Investment spending drives earnings, and it's going to technology, |
We've held out that, as you move through the third-quarter earnings, the companies that report will show strong growth, ... Stock prices have been so compressed that it give investors reason to step in and pick up stocks at depressed prices. |
We've hit some resistance on the indexes, ... Coming into March there were some valuation concerns coupled with the Iraq effect and the indexes have been struggling to break out. |
What's going to drive stock gains going forward is the earnings, and the current crop of earnings may have already been accounted for. I'm looking for the earnings in the second quarter and particularly the second half of the year to drive stocks higher. |