Meehan is still long term bullish - expects to see the year's highs in Q4, also short term bullish, but expects a significant pullback before Q4.
>>I expect that Mr. Gumpspan’s moves will unleash greater inflationary pressures on
the domestic economy, but that’s unlikely to be a major concern until sometime next
year. In any case, he’s unlikely to repeat the same mistakes again, so the chance of
another bubble forming under his watch is slim. Simply put the outsized gains that
investors have come to expect since the mid- ‘90s are apt to be only fond memories
in the new millennium.
With the Fed very accommodative, tax cuts on the horizon and easy comps, I remain
convinced that ’02 earnings growth will support higher prices. However, I might be
forced to revisit my near-term targets (SPX 1350/COMP 2350), as the strength of
this move has exceeded my expectations. I remain very optimistic in the short-term.
Still, I see little reason to believe that the market will sail through the summer
unscathed, and I expect that, as we reach the latter part of this quarter and sentiment
becomes more bullish, we’re likely to see a significant pullback. Nonetheless, I
believe we’ll see the year’s highs in Q4, as it becomes clear that the economy was
never as bad as many had come to believe. <<
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