If a stock falls in the market and no one's there to by it is it really undervalued?
What do you think Sig??
Abbyspeak.
"Ms. Cohen, a noted bull even in this wildly gyrating market, said that global investor attention has recently focused on three nations -- Russia, Brazil, and Venezuela -- whose economies are weak and whose currencies have likely sunk as far as they're going to.
Yet, Ms. Cohen claims that the direct economic consequences for the United States are "quite small."
So small, in fact, that Ms. Cohen told investors in a research note that U.S. stocks are 5 to 8 percent undervalued, and repeated her year-end targets of 9,300 for the Dow and 1,150 for the S&P 500 index.
"Even when combined, total exports to these three countries are less than 4 percent of U.S. exports and there is little banking exposure," said the analyst, arguing that "the real issue in global markets appears to be the widening of risk [premiums]."
And what about Asia? "Problems in Japan, the world's second-largest economy, have been factored into our work for almost two years," the analyst countered. "We see no recent evidence that the Japanese impact on U.S. trade or bank credit has worsened." " |
