Re: Fundamentals.
The more they yap about the fundamentals the more the stock market sinks and the more the sinkhole economy tanks:
"I think the fundamentals of the American economy are strong...I believe the momentum of our expansion should continue for some time...I don't see the end of this expansion as in sight.”
-- Larry Summers, US Treasury Secretary, December 15, 1999
"With each successfully averted crisis, with each near miss, the certainty that things will always work out seems to grow. And with it, the likelihood of unsound decisions in the public and private sector."
- Robert Rubin, February 2, 2000 in a speech before the London School of Economics (Reuters)
"We believe that the fundamentals of our economy look still very very strong...Almost all major forecasters have, if anything, improved their forecasts over the last couple of months so I think that the underlying fundamentals of our economy remain quite strong.”
-- Gene Sperling, Chairman of the White House National Economic Council, April 4, 2000
We obviously had a bubble...and the bubble has been corrected. The correction...was expected and very healthy."
-- Frank Zarb, Chairman of NASDAQ, quoted by Bill Bonner of the Daily Reckoning
April 7, 2000, before the further sharp declines the week of April 10 - 14
"...markets go up, markets go down... You've got to keep focus on the fundamentals (and) the fundamentals of our economy are sound...We will continue to do well over time as long as we keep our eye on the ball -- that means fiscal responsibility and investment in education and research and development and the kind of investments that create more opportunity for the future...As long as we keep the fundamentals in good shape the economy is going to be fine and the market is going to be fine."
-- Al Gore, Vice President of the US, presidential candidate, April 15, 2000 (Reuters)
"The fundamentals of the American economy continue to be strong. I believe the momentum of the expansion is very much in place."
-- Larry Summers, US Treasury Secretary, April 15, 2000, at the G7 conference (Reuters)
"I believe that there are a number of strong fundamentals in place that will be very helpful for the economy going forward...The American economy is in good shape at the end of this decade...I think it's a mistake to lose sight of some very strong fundamentals..."
-- Larry Summers, US Treasury Secretary, December 19-20, 2000
“A significant portion of the correction in the market and in tech sector is behind us and the S&P 500 is priced 19%-20% below fair value and should move up sharply after such undervaluation. The S&P small cap index and Russell 2000 are overvalued, primarily due to reduced Treasury supply. P/E multiple expansion will propel the market forward and that the economy will not head into recession.”
Dow: 12,500 by mid-year; 13,000 by year-end (2001)
S&P 500: 1500 by mid-year; 1675 by year-end (2001)
Jeffrey Applegate, Chief Market Strategist at Lehman Brothers , December 30, 2000 |
