I don't think the Fed is going to raise rates. [They are] worried about overheating, but there are no signs of inflation. |
I think technology stocks are in for a correction, but it's a perfectly normal correction. This is a seasonably weak period of time. |
I think the basic fundamental underpinnings are very sound. The banking system's sound, there's no near-term crisis to be had. It doesn't mean the stock market's not overextended - which I believe it is and is due for some sort of setback. But I don't think it's 1987 all over again. |
I think there's a potential for a short-term negative, but it would only be short term and not something to be concerned about. |
I think there's going to be heightened nervousness about whether interest rates are going to go up towards the end of the quarter because the economy does look strong. The extreme volatility that we have seen recently is going to continue. |
I think, on balance, earnings are up between 13 and 14 percent on revenue growth of about 8 percent. That's nice, very healthy, but not something to start a brand new leg of the bull market on. |
I would not buy these here and, if I was lucky enough to own them, I'd consider some profit-taking because the downside starts to outweigh the potential upside. |
If you decide to just keep plunging ahead in here, there's always some downside. And I don't know that we're really expecting any downside. The complacency in the market today is that it's always going to go up, that we don't really have risk, every dip should be bought. I don't think that's a healthy situation because there are ups and downs. |
If you're kind of that mid-sized firm, what do you do? It looks like you're kind of forced into a combination. |
It seems that the market wants to continue to rally for a while, so perhaps it's going to test those old highs, but I do think that the market is overvalued and caution is warranted here. |
It's trading on momentum at the moment, and momentum has a life of its own and you don't know where it's going to end. |
Now that you have some third-quarter earnings coming out that might be pretty good with great visibility, you might see a little bit of move back toward the large caps. With Motorola being an indicator, you're going to get predictable, solid earnings out of the large caps and that might attract some money in here. |
Now there would be a lot of people that would argue they are worth it. I would say, okay, maybe they are. But, gosh, if there's a stumble... if you're trading at more than twice your growth rate... the down side becomes horrific. |
So I think when they report today, you want to take a look into the numbers and see what the ad revenues were for last quarter and, indeed, as this year progresses. |
The reason they were pushed up was there was going to be a bunch of mergers. Now, maybe there won't be a bunch of mergers. |