Sam Stovall
Sam Stovall
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.
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,
book districts federal indication strength whether
The beige book should give us a better indication of where the strength is, whether it's in all the Federal (Reserve) districts or just one area.
data economic fed feeling improvement interest investors itself lower
I think investors want to see improvement in the economic data so that the feeling is that the Fed doesn't need to lower interest rates. That in itself is a positive.
fed further next questions rates turn
If the Fed lowers rates next week, the questions become 'How much further can they go?,' 'Is it effective?,' and 'Can the Fed really turn things around?,'
additional continue earnings economic fed fuel investors likely lower negative numbers rates whatever
Investors are going to look at whatever economic numbers come out and say is this additional fuel for the Fed to lower rates in March. Earnings are going to continue to come out and they're likely to be negative so you're going to have earnings weighing on the market.
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,
actual quality rotation
The rotation has more to do with defensiveness and dividend yield, than with the actual quality of the investments themselves.
based expected reports retail sales strong
These reports are expected to be pretty strong based on July's retail sales figures.
adopted approach care consumer defensive either found health investor market november returns worth
An investor who was long the market from November to April, but then adopted a defensive approach by rotating into either the S&P Consumer Staples or Health Care sectors during May through October, would have found ... that the returns were well worth the effort.
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,
although clearly regard today woods
I would regard today as positive, although we're clearly not out of the woods yet.
likely
If they don't do it tomorrow, they will likely do it in January.
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.