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“PANIC BUYING” COULD RESULT IN LARGE SELL-OFF

5 August 2009 by Cullen Roche 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.

Cullen Roche

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Comments
  • James

    I think everyone knows the markets are ahead of themselves. Some may argue they are 2000pts ahead.

    08/05/2009 at 9:02 PM
  • Rob

    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.

    08/05/2009 at 10:33 PM