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Strategies & Market Trends : Making Money is Main Objective -- Ignore unavailable to you. Want to Upgrade?

To: lightwave51 who wrote (1888)	3/4/2002 11:57:27 PM
From: lightwave51	Read Replies (2) \| Respond to of 2155

March 4th, 2002 WEISS COMMENTS What Goes Up ... -- March 4, 2002 This latest bear market rally won't last. Investors have bid up stock prices on the assumption that the recession is over and that a recovery has begun. But the reality for the stock market is this: Even if the recession has ended and the recovery is underway, that recovery will be spotty and weak, and corporate earnings still will not grow enough to justify their inflated stock prices. According to First Call/Thomson Financial, earnings for calendar year 2002 for S&P 500 companies will probably grow less than 5%. In contrast, industry analysts are telling investors that earnings for these very same companies will grow by 17.3%. These are the same analysts who told investors that company earnings would fall by only 6.2% in the third quarter of 2001 -- when, in fact, earnings fell 21.7% that quarter. We expect they'll be just as far off the mark in their estimates this year. Once investors realize that the recovery they've been sold is just a handful of beans and not the seeds for a magical beanstalk, the sell off will begin.