My #1 Idiot Award i must this time give 2 Alfred E.Newman statues. One to Applegate and the other to his fellow crony(and spokesperson), Reinhard <<While Mr. Applegate, the firm's chief investment strategist, wasn't available to comment, Charlie Reinhard, senior U.S. investment strategist, said the firm cut its outlook based on its expectations for earnings this year. It cut its earnings outlook to $51.50 for the S&P 500 from $53. For 2003, it cut its S&P earnings outlook to $56 from $58.
Still, the firm is upbeat about the stock market's prospects. Mr. Reinhard said "accounting, corporate governance and the war on terrorism have led to lower valuations, but we view that as making the market very attractively valued."
According to Lehman's valuations model, the market is 25% undervalued, Mr. Reinhard said.
Regarding the economy, indicators "are not increasing the way we'd like to see," which has led him to believe that economic risks may not be balanced between economic weakness and inflation. But his faith hasn't wavered for the second half: "The most important theme by the end of the year will not be accounting or corporate governance, but economic recovery.">> |
