Some Investors Start To See Value

January 20, 2008 at 6:39 pm  ·  Category: Market Commentary, Sentiment Analysis

“A full fledged recession is now priced into bonds and is increasingly priced into stocks.”

Jim Paulsen (subscription required), Chief Investment Strategist, Wells Capital Management

“We see US equities as being about 10% to 15% too cheap.”

Greg Fedorinchik (subscription required), Senior Asset Allocation Strategist, UBS Global Asset Management

“The time comes when enough is enough.”

Mike O’Rourke (subscription required), Strategist, BTIG-Bass Trading, who upped his equity allocation to 50% from 40%

“If we are in fact in recession, we may be close to fleshing out a bottom here in stock prices.”

Duncan Richardson, Chief Equity Investment Officer, Eaton Vance

“We’re beginning to see some bottoming signs.  We’ve switched from complacency to concern but not capitulation yet.”

Byron Wein (subscription required), Chief Investment Strategist, Pequot Capital

The cover story for this weekend’s Barron’s is “Bon Appetit” (subscripton required).  A story on the front page of The Wall Street Journal’s “Money & Investing” section for Saturday is titled “When Is It Time To Buy Stocks Again?” (subscription required).

With the S&P 15% off its October highs and the S&P trading for about 13 times esimtated 2008 earnings and 15 times 2007 earnings, some investors appear to be starting to see value here.

So, like I wrote on Friday, if we can get some good earnings news or investors start looking forward to a 50 basis point cut from the Fed, we could see a nice rally some time soon.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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