Sam Stovall
Sam Stovall
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,
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.
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.
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.
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,
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.
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.
bit concern stronger
There could be a little bit of a concern if they come in stronger than expected.
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.