Vman - NAZ to 1,400 by summer - Reuters article on the SI home page -
They are quoting a guy called Don Hays.
He said the Nasdaq will be the spoiler as it retraces back to 1,400 by the end of the second quarter. But
even at that level, the market would still carry a high price/earnings ratio of 75 versus a normal P/E
of 30.
``Despite the big selloff, I still don't think that those bullish people really believe that the bull market
is over,' said Hays. ``Abby Cohen, Goldman Sachs' stock strategist, consoled them, and Donaldson,
Lufkin & Jenrette patted them on the back by raising its asset allocation in stocks and everyone was
running with the bulls.'
But watch out for the next step.
``Here's how bear markets start,' Hays said. ``The first phase will drag the Nasdaq down by several
hundred points through the recent low. But the second phase, possibly by mid-summer, will hit all
stocks -- Dow and Nasdaq -- with massive capitulation that will wash out the remaining bulls.'
For heavens sake this has got to be a bit over the top doesn't it??
Cramer didn't say the whole market was a bust or at least he didn't say it yet. He just said that he was getting out of MSFT. Actually I happen to think that the MSFT sell off is way over done. Is there any real evidence that sales of PCs new and replacement have peaked. What about all the purchases that were delayed due to Y2K??? This MSFT is ex-growth stuff has got to be nonsense. What about all the goodies in the pipeline??
Best regards,
L |
