Overheard On The Street
Here’s what they’re saying at mid-day:
Bob Zuccaro, Portfolio Manager, Grand
Prix Fund: “The Nasdaq has undergone its second-worst decline in its
history, and it’s down 43% now from the peak on March 10. We think the selling
is overdone. The bad news is obviously already out. It’s interesting to note
that the Nasdaq has corrected at least 14% in all even years starting in 1990,
which again is the bad news, but the good news is that in the ensuing year the
Nasdaq has averaged a gain of 44.2% while the S&P has been up 26.5% in those
years. Notwithstanding the widespread damage that has been done to many growth
stocks this year, looking out one year, we look for a very substantial rebound,
and we look forward to the prospect of a very strong showing by the stock market
in the year 2001.
letter-spacing:-.1pt;mso-ansi-language:EN-US;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA” Times>Frank Gretzletter-spacing:-.1pt;mso-ansi-language:EN-US;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA” Times>, Market
Analyst, Shields & Co.: “With the world’s most important job still
vacant there are, as they say, more than just a few crosscurrents.yes”> It wants this to end, and when that happens the market again
could rally sharply. Another rally,
however, is almost certain to be just that, another rally.
letter-spacing:-.1pt;mso-ansi-language:EN-US;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA” Times>“And
despite the seasonal upward bias, there’s reason to doubt if there will be an
upward bias at all. Certainly in
beaten up stocks like the semi’s and, for that matter, most of the techs,
there’s room to bounce. And,
healthcare and other defensive areas like the foods act well.
But the complacency is overwhelming, especially at the institutional
level. Everyone is looking for a
rally, and the market rarely accommodates everyone.”
Robin
Griffiths, Global Technical Strategist, HSBC: “There will be a
new President, but whoever it is will not have power to indulge in any extreme
policies. The economy and markets will do what they were going to do. Seasonal
forces are so strong that a rally into the New Year and up to inauguration day
is still a reasonable bet. After that, however, the normal bear part of the
economic cycle is unavoidable.”