Overheard On The Street
Here’s what they’re saying at mid-day:
Frank Gretz, Market Analyst, Shields
& Co.: “Short term, the market seems in much better shape — no
downward spiral, and the really good news is that there is a January effect. We
should at least muddle through to the seasonally weak period of early-to-mid
February. And then it’s anyone’s guess, but ours is for more bear market. Unlike
a period in 1998 when the problem was primarily financial and easily resolved by
lower rates, this time is different.
“There’s too much of everything, not just around here but around the
world as well, and lower rates won’t correct that, at least not quickly. And as
for the market itself, “tired of going down” is not how bull markets
begin. They begin out of a thorough washout in all stocks, not just the Semis
and the Ciscos but in the Cienas and Junipers too. And even the consumer stocks,
the drugs and so on, won’t get away unscathed.”
Paul Rabbitt, President,
RabbittAnalytics.com: “The Fed has acted to avert crises in the capital
markets as they have in the past. We will not fight the Fed. While it may take a
few weeks or months for the downward momentum dissipate in all sectors, this is
a signal for buyers to step back into stocks. Federal funds futures suggest a
70% bet that the Fed will cut rates another 1/2 percentage on Jan. 31. According
to Federal Reserve Board Vice Chairman Roger Ferguson, Fed officials remain
ready to act ‘prudently and forcefully’ should the economy continue to
falter.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “Last week equity funds saw $5.5
billion of inflows vs. $1.9 billion of outflows in the prior week. Money
market inflows were an all-time high $54.5 billion, and consequently, we believe
that the record money market inflow is a significant bullish data point for the
market, and it should provide strong sponsorship for stocks going forward”