“PANIC BUYING” COULD RESULT IN LARGE SELL-OFF
5 August 2009 by TPC
2 Comments
The rally in markets may be getting ahead of itself, says Ron Ianieri, chief market strategist with Ion Option. He speaks to Bob Parker, vice chairman at Credit Suisse Asset Management and CNBC’s Martin Soong about the “panic buying” in markets.
I think everyone knows the markets are ahead of themselves. Some may argue they are 2000pts ahead.
A flash from the past…..S&P 500 earnings were $17.02 in Q208. Abby’s 1,400 call put a 20.5 multiple on that quarter’s earnings. Goldman is being more conservative this year. Q209 earnings will probably be about 14. The 1060 call is only an 18.9 multiple. Slower earnings growth ahead. The call last year came just in time for Goldman to start selling.
Goldman’s Cohen sees S&P 500 fair value
at 1,400
Mon Jul 14, 2008 8:39am EDT
NEW YORK, July 14 (Reuters) – The fair value of the Standard & Poor’s
500 .SPX, the broadest gauge of major U.S. stocks, is at 1,400, based on a 6
month to 12 month view, Abby Joseph Cohen, Goldman Sachs’ senior
investment strategist, said on Monday.
“Our strategy team’s sense is that in 6-12 months, fair value in the S&P 500
is on the order of 1,400,” she told CNBC television.
The S&P 500 entered a bear market last week, falling more than 20 percent
from its Oct. 9, 2007 record close of 1,565.15. On Friday the index ended at
1,239.49.
MARKET QUOTES
THIS WEEKS MOST POPULAR STORIES
MARKET NEWS