Concord Equity's Kimmel Sees Market Hitting Bottom
By: Amy Braunschweiger, Of DOW JONES NEWSWIRES
Monday July 15, 3:48 pm Eastern Time
NEW YORK -(Dow Jones)- The market is hitting bottom and the bleeding should ebb "sooner than people realize," said Jordan Kimmel, chief market strategist for Concord Equity Group.
Right now, investors are trading stocks not necessarily according to valuation but rather in sync with psychological motivations, he said.
"You're at that level where people won't even bend over to pick up a golden egg anymore for fear of being hit on the head," Kimmel said. "There's panic in the air."
At the end of every bear market there is total distrust of Wall Street, the strategist believes, as well as distrust of those running companies. Media reports on the "doom and gloom" perpetuate the situation, he added.
Although Kimmel finds it a stretch to believe the markets will finish on the upside for 2002, he does believe there will be an "excellent" trading bounce off the selloff.
However, Kimmel isn't sure what the catalyst to the bounce would be. The market probably won't turn without help from the brokerage firms.
The firms should band together, pool their money, and start investing in worthy companies to defend stocks from short sellers.
"It's one thing to say Philip Morris is a strong buy," said Kimmel. "It's another thing to buy a million shares."
-By Amy Braunschweiger; Dow Jones Newswires; 201-938-22y.braunschweiger@dowjones.com |
