Mannyj
I do not believe that ABTX will retest 7 1/2 unless there is some major market calamity, and I personally do not see the DJIA testing 7K again. There is strong confidence in the US economy, foreign money is coming in, domestic money is staying at home, Europe is not doing too badly, long term rates have no upward pressure at all even with the labor market being tight. My biggest concern for many months now has been the prospect of strong deflation (rather than Uncle Alan's obsession with inflation), which could throw many sectors of the economy into a tailspin by restricting pricing increases and cutting into margins. The obvious stimulus for this scenario would be SE Asia and possibly Japan, of course. Unless we start to see 2-3% deflation, however, this should not be a problem, and might even benefit ABTX which should not experience any pricing pressure for their products.
IMHO, I consider an appropriate buy target for ABTX is perhaps in the low 8s. But most of us believe that the long term prospects for ABTX are so outstanding that by holding for a significant time it will not much matter if buys were at 7 1/2, 8 1/2 or 9 1/2.
FWIW,
Jim L |
