Now that the market has had a chance to catch its breath between Greenspan and the CPI numbers. Looking historically at what happens during Triple Witching in June, would make me lean to saying CMGI will be higher on Friday than it is today. How CMGI will close today, I dunno. Also, yesterday was such a blowout that we may just kind of consolidate here today.
Good news for equities going forward into the summer rally though
Wednesday June 16, 1999 (5:00 pm ET)
S&P Investment Policy Committee Boosts Equity Asset Allocation to 60%
By Ken Shea, S&P Director of Equity Research
NEW YORK, Jun. 16 (Standard & Poor's) - The S&P Investment Policy Committee voted to raise the equity portion of its recommended asset allocation by 5% to 60%. The allocation now stands at 60% stocks, 35% bonds, and 5% cash. The main reasons for the increase are:
Today's report of quiescent domestic inflation (measured by the CPI report) reduces the likelihood of both an immediate Federal Reserve interest rate increase (on June 29), and more importantly, the growing anticipation of a possible series of interest rate increases in coming months. Accordingly, the IPC anticipates the 30-year bond yield to decline below 6.0% in coming weeks, bolstering the investment attractiveness of common stocks in general and growth stocks in particular.
S&P Equity Research expects operating earnings per share year-over-year comparisons for the S&P 500 to accelerate for the remainder of 1999, driven by continued healthy growth from the Technology, Communication Services and Consumer Cyclicals sectors, and from a dramatic recovery in the Energy and Financial sectors. Last year's earnings from the latter two sectors were depressed due to the plunge in global oil prices and severe financial troubles abroad. As a result, S&P expects S&P 500 operating earnings per share to rise 17% in 1999, to $51.75.
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