Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Rabbitt, President,
RabbittAnalytics.com: “Bull markets need a constructive earnings
environment and good liquidity. This market has neither. However, stocks are
steeply oversold and seasonal forces are positive for the next 90 days. Nasdaq
crushed investors in November as it declined 23%, proving that technology is
economically sensitive. $1.7 trillion in wealth was lost according to the
Wilshire 5000. A “dead-cat bounce” is likely.
“The economy has just begun to slow. Adding to this evidence, the Fed’s
November senior loan officer opinion survey showed tightening business lending
standards exceeding that of the brief credit crunch in late 1998. The resulting
positive focus in the stock market will be on companies that have consistent
earnings.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “While calling bottoms has proven
to be a dangerous game in the current climate, this nearly weekly exercise in
futility has to be running its course sooner rather than later. Consequently, we
continue to believe that the current market environment actually benefits
longer-term investors whose time horizons and disciplines do not mirror the
short-term orientation that is in control of the mood and performance of today’s
marketplace.”
Robin Griffiths, Global Technical
Strategist, HSBC: “For the Dow the low of October 19 is still looking good.
The type of stock that investors are switching into are more Dow stocks than
Nasdaq. Citigroup, Merck, and Gillette are doing well. These stocks have a
business franchise that that is obviously the best at what they do, and should
have completed a two-year bear phase. Top sectors to like right now are oils,
pharmaceuticals, biotech, fuel cell, water and home building.”