Here are two opposing 'expert' views of the market in the near future.
***#1
Mark Johnson, Editor of the Internet Financial Connection, provides the
following interview with Louis Navellier, mutual fund manager and Editor of
MPT Review navellier.com.
Q: Louis, what do you think of the stock market right now? Have the fears of
a third rate hike been alleviated from the market?
A: Absolutely! The fear of inflation is fizzling fast. I would be shocked if
the Fed raises rates further. The economy is moderating. Moderate growth
should help squash any potential inflation. Even better, corporate earnings
are still accelerating. Third- and fourth-quarter earnings should be nothing
less than phenomenal, with average gains in excess of 21 percent. These
strong corporate profits should set the market up for a very strong year-end
rally.
Q: I have been following you for some time and your predictions of the stock
indexes, such as the DJIA, S&P 500 and Nasdaq Composite have been
exceptional! Where do you think those indexes might trade over the coming
year?
A: I expect the Dow will hit 13,500 between now and the end of the year. It
could go as high as 16,000 next year. The S&P 500 should be slightly
stronger because its underlying earnings are better than the Dow. The Nasdaq
Composite should be very strong because it is dominated by very large tech
stocks. Right now, the Nasdaq market is the place to be.
***#2
Folks, we're going down as we expected. We don't know how far the Dow
will go, more likely 9,800 -- but this coming week may tell the tale. We
had 4 failed rallies out of 5 days last week, despite good news. On Floyd
Thursday, when bond and commodity exchanges shut down early, a buy program
that kicked in around 1:40 pm (and probably related to Triple Witching)
managed to salvage what would have been steep losses in the market's
leading indices. The NASDAQ made a new high recently but even the broader
S&P 500 didn't confirm, not to mention the counter-performance of the Dow,
down 200 points on the week. Higher-than-expected retail sales figures
for August created a sell-off in bonds, lifting the yield on the
bellwether 30-year Treasury to 6.11%, with only weeks to go before the Fed
has its dreaded Open Market meeting. |
