Sam Stovall
Sam Stovall
continuing economy expand sure
We are really not sure if the economy is continuing to expand or continuing to contract,
anticipate concerned difficult earnings events interest investors rates third trio weak
While it is difficult to anticipate unanticipated events, investors could become increasingly concerned about oil, earnings and interest rates -- the trio of trepidation -- in the traditionally weak third quarter.
approach cautious companies earnings high investors larger quality surprised toward
We would not be surprised to see investors take a more cautious approach by gravitating toward larger companies with high S&P earnings and dividend quality ranks.
affected areas fourth likely production raise rebuilding
Yet the rebuilding of affected areas will likely raise production in the fourth and first quarters.
companies good industries investors neighbors prospects recovering
We think investors should own companies like Wal-Mart, like Alberto-Culver and Neighbors Industries because they have good fundamental prospects in a recovering economy,
both couple economy-and-economics group involved next sensitive situation sort turnaround
Both are involved in a sort of a turnaround situation with the economically sensitive group and I think at least, over the next couple of months, they'll do well,
bit concern stronger
There could be a little bit of a concern if they come in stronger than expected.
likely
If they don't do it tomorrow, they will likely do it in January.
bit fed interest investors meet next possibly profit raise taking week
Possibly we could see a little bit of profit taking because investors had been anticipating that when the Fed does meet next week that they won't raise interest rates,
although clearly regard today woods
I would regard today as positive, although we're clearly not out of the woods yet.
aggressive bad basically believe bouncing condition deeply earnings easing fed industries interest last likely lower market policy rate remain result sensitive ten top tread water year
Basically the top ten industries were those that are economically sensitive and are bouncing back from their deeply oversold condition last year as a result of lower interest rates. We do believe the Fed will remain aggressive with its easing interest rate policy but we feel the earnings are going to be pretty bad for the first quarter, so the market is likely to tread water for awhile.
allow bull correction digestion gains maintain markets order percent require
Many say this much-needed digestion of gains is long overdue, as bull markets typically require a correction of more than 10 percent in order to allow the bull to maintain its upward tendencies.
further might
We might have a little further to go on the downside,
buying companies food indicate inside longer outside people preparing rather restaurant
Some of the restaurant companies are doing exceptionally well and I think demographics, longer term, are going to indicate that more people are going to be buying their food outside the home, rather than preparing it inside the home,