Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Rabbitt, President,
RabbittAnalytics.com: “Bull markets need worry, liquidity, and reasonable
earnings. We have those ingredients. Seasonally, this is the best time of year
to buy. Stocks have been shaken from weak hands. Expectations have become
reasonable. Valuations have improved. Dream stocks have been discarded for real
companies — a healthy development.”
“Mutual fund tax selling will wrap up on Tuesday, but worries over
technology earnings-growth, the high price of oil, ongoing tensions in the
Middle East, and election uncertainties will continue short-term pressure, thus
providing another week of buying opportunities. Our S&P one year regression
forecast models are positive, and we expect a 20% annual return from current
levels.”
Brian Belski, Fundamental Market Analyst,
U.S. Bancorp/Piper Jaffray: “Despite the clouds of doubt and despair, the
stock market appears to have weathered another October storm and the third
quarter earnings crunch. While next week’s elections should amply fill the lead
topic shoes away from earnings and the October correction, we still believe the
stock market’s rebound into the end of the year will begin earnestly and very
shortly, led by the very valuation bottoms and growth prospects that several
technology stocks and groups are affording investors.”
John Roque, Vice President, Arnhold and
S. Bleichroeder, Inc.: “We’ve been expecting a bounce in Nasdaq — extreme
oversold, hedge funds short up the you-know-what, ‘they come for the pretty
girls last,’ things don’t usually go down in a straight line without some minor
reprieve, 3000 has been tested five times and has done a decent job of holding
so far, the recent test of 3000 occurred with fewer new lows on Nasdaq, volume
has been good, put/calls rose to levels last seen at the October ’98 bottom, but
we’ve also been going with the theme that there is no bottom yet un
Nasdaq.”