“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.