Grace Fey
Grace Fey
analysis avoid believe brief economy hike interest rate slowing
My sense from just this brief analysis is we may avoid a rate hike in August. If you believe the economy is slowing down, we may be at the end of interest rate increases.
chair fed good knowing
Just knowing who the new Fed chair is going to be is good for the market.
growth larger market shift value year
This year has really been a small- and mid-cap market, particularly on the value side. I think 2005 will be a shift to larger companies, and more of a growth market from a value market.
seems
It seems to be more of the same.
certain coming direction earnings economy fear focusing good interest market rate rates selection stocks
I think that the market - once we get through this interest rate fear and we're more certain about the direction of interest rates - will go back to focusing on earnings. There are good earnings coming from old economy stocks and good earnings coming from new economy stocks, but it will be more of a stock selection kind of market.
again investors money northeast poor stocks storms tech ultimately
I think we need to have more storms in the Northeast ? it just makes for a better market. Investors just really, really want to own tech stocks. Ultimately we'll make money on those stocks again but short-term we really have pretty poor fundamentals.
remain
I think it (the sell-off) was very overdone. For some of these companies, the fundamentals remain very strong.
interest lower markets rising surprised time trend
I wouldn't be surprised to see (the Dow) trend lower because markets don't trend up in a time of rising interest rates.
negative third worry
I think the worry is they are going to say something negative about the third quarter.
cap early fourth large signs
At the end of the fourth quarter, there were signs of large cap outperforming, but then it reversed early in 2006.
albeit attractive cap companies growth investor large looking particular quality small start step stocks tech turn weak
The large cap tech stocks in particular are really looking very, very attractive right now. At the moment, the small investor can start to step in, albeit slowly, because when these things begin, they don't typically turn right around. We could be looking at you know a weak quarter. But some of the large cap quality growth companies look very attractive right now.
convinced correction dramatic earnings expect few leadership looks occurred outlook past people sideways stocks tuesday until
If you look at the correction that's already occurred in the leadership group, tech, over the past few weeks, it's been pretty severe. I don't expect that there will be a dramatic sell-off on Tuesday -- stocks will go sideways for a while until people become convinced that, while multiples won't expand, the earnings outlook looks pretty good.
guidance
I do think that guidance is going to be key.
assuming begin bottom itself market nice repair
The market can begin to repair itself in this kind of environment. We're making a very nice bottom here, and assuming the fundamentals are what we think they are, we should have a better market going forward.