Murrey...
My local paper is the Orange County Register, so coverage of Bill Gross of Pimco is like local news here. He's now saying a Dow around 5,000 Dow is what it will take to make stocks a fair value compared to bonds, 650 for S&P, Nasdaq, "God knows where". He based this on TIPS (Treasury Inflation-Protected Securities) now paying 3% after inflation, and that stock investors have a right to expect about 3.5%...which they're not now getting...but which a 5,000 Dow would deliver.
He was interviewed on MSNBC on Friday. When asked if his point of view might be self-serving, he added that for long periods, 20 years, stock will usually out-perform bonds, but in shorter periods, like this one, he feels "stocks stink".
Incidentally, if you click around this site, you'll find a lot of good information about ADBE.
moneycentral.msn.com
The company presented at the SSB conference last Thursday. The resulting recommendation, with a grain of salt, is outperform. Most other disagree. Zack's has it as a HOLD. Zack's earnings estimates for this year and next are about a buck each, so the P/E is about where it is today, 20.
Questions for you: I'm satisfied that they'll win gradually over Quark, but how about your view of their prospects in the web area.
Chaz |
