There is much more value in small and mid-cap stocks. Their multiples are much more realistic. |
There's suddenly this new possibility that the Fed will tighten monetary policy again. Most people were going on the assumption that that was not going to happen. |
They're trying to turn the boat very, very slowly and Wall Street may not be happy in the initial stages that they're doing that fast enough. So the first cut may not have as big an impact on stock prices as it should, but it should have a nice impact on the economy. |
This is a funny kind of market, because earnings aren't really a positive driver for the market and haven't been for quite some time. The good ones don't really help, but the bad reports slaughter (the offending companies). |
This lessens the possibility that the Federal Reserve will tighten monetary policy again at their next meeting. One more increase was probably built into the market, so it's now being taken out of the market. That drove bond prices higher, and, with yields coming down, makes stock prices more attractive. |
We really got the market oversold after the last couple of weeks. We have stretched the rubber band enough on the downside to get some upside bounce. |
We still consider ourselves to be bullish but we're not as bullish as we were, obviously, a couple of months ago. The markets had a pretty big run. |
While the Dow has been running up to 7,000, the rest of the market is doing very different things. Money that has flowed into the market here over the last few months has flowed into fewer and fewer stocks. |