Many thanks,
Pundit Central
6 P.M. EST -- MONDAY -- FEB. 8, 1999
FROM THE BULLS:
"Our cycles call for some sort of a short-term low in the Dow near Feb. 8 -- plus or minus two days -- and then the start of a big rally," says JERRY FAVORS, editor of "The Jerry Favors Analysis" in Columbus, Ohio. "So we're probably going to start doing some buying sometime early [this] week." However, he cautions that even the slightest tick below Friday's lows "is going to signal lower prices and it will also signal a probable test of 9,146 intraday in the Dow Jones." (CNBC "Street Signs", 2/5)
"Yes, valuations are high, but they've been high and taking money out of the market because of high valuations has not been a money-making proposition," says TIM MORRIS of BESSEMER TRUST. (WSJ, 2/8)
FROM THE BEARS:
"I think for the year, you're going to find the market up a little or, more than likely, down a little, because I think you still have the Asian weakness to be factored in and I expect the U.S. consumer to pull in its horns just a little bit as the year goes on," says VINCE FARRELL of SPEARS, BENZAK, SALOMON & FARRELL. "Therefore, you have some difficulty generating corporate profits. But I don't think interest rates are going to go up significantly from here, so the valuations will stay high. But it's time to have a consolidation because we've had four such good years. So I expect the market to be off slightly on the year." (CNN "Moneyline", 2/5)
"I think the market is entitled to a little rest here and by going [from bullish] to neutral I guess I'm trying to say that while there may be some downside, it's not a big deal, it's just that we shouldn't be looking for new highs anytime soon," says CHARLES BLOOD of BROWN BROTHERS HARRIMAN. "At the minimum I think we're looking at 3 to 5 percent down, maybe a little bit more than that -- a very typical bull market type consolidation or correction." (CNBC "Market Wrap", 2/5)
"I think the top 50 stocks are going to have a correction," says LOUIS HOLLAND of HOLLAND CAPITAL MANAGEMENT. "I believe most stocks last year already had their bear market." ("Wall Street Week", 2/5)
"The parabolic moves in many of the megacap tech stocks, not to mention the Internet group, indicate that a severe correction, rather than a 'healthy pullback,' is likely," says WILLIAM MEEHAN of CANTOR FITZGERALD. (WSJ, 2/8)
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