Overheard On The Street

  • February 13, 2001
  • Daniel Beighley

Here’s
what they’re saying at mid-day:

Paul
Rabbitt, President, RabbittAnalytics.com: “We think it is
important for investors to focus beyond the economic and earnings negatives of
the next few quarters and look toward 2002. 
While the economy is certainly slowing, it still is unlikely to fall into
recession.  The
combination of tax and rate cuts and the continuation of strong productivity
assures us of a recovering economy and sufficient liquidity to create cash to
buy stocks going forward a year. 
So, while stocks are likely to trade sideways in the next quarter of two,
it is highly probable US equities will reward investors with handsome returns in
the forward year. 
We remain underweighted in technology where valuations are still high,
earnings estimates are still being revamped lower, and momentum is poor. 
However, this week we upgrade financials where momentum is strong, earnings estimates are rising, and valuations are good in two-thirds of the
industries in this sector.

Bill
Schneider, Managing Director of Equity Block Trading, UBS Warburg: “The
market kind of feels like it’s due for a rally only because it was oversold and
the negative sentiment had gotten so high. That said, it’s difficult to identify
any catalyst for a knee-jerk rally or any prolonged advance because the economy
is slowing and interest rate cuts take a long time to dig in and have any
effect. Greenspan made some comments that can be considered favorable for the
technology group, but it’s hard to get wildly bullish and think that you have to
run to the bank and take money out to buy stocks.”

Brian
Belski, Fundamental Market Strategist, U.S. Bancorp/Piper Jaffray:
“Regarding technology, telecom, and biotech, God giveth and taketh away.
Yes, the recent move toward defensive groups this month has taken the wind out
of the Nasdaq’s and technology’s rebound. But keep in mind that the median
percentage EPS growth for the fiscal year is still hovering in the low 20s for
the S&P 500 technology sector, far and away the best EPS growth rate of any
sector.”

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