No hope for US stocks?

“What we’re looking at is a giving up of hope on the part of investors,” said Joseph Keating, chief investment officer of the asset management group at AmSouth Bank.

So the question is do the poor IBM numbers and the recent economic data really indicate an economic slowdown? I don’t think inflation will be out of control, but I don’t think it matters. Even a little inflation will increase already poor investor sentiment.

“Earnings are really the only hope for this market,” said Brian Pears, head equity trader at Victory Capital Management in Cleveland. “If, on the whole, earnings can go up, then we might be able to overcome oil and inflation and all the other things.”

I don’t plan to put more money in stocks just yet. Investors will be looking for bad news in terms of inflation (consumer prices and producer prices) and I think that they’ll find something that spooks them. The figures may not be real bad, but investors are spooked so it won’t take much to send the markets even lower.

3 Responses to “No hope for US stocks?”

  1. Scott says:

    Hi James,
    Thanks for your post on my site. I have added your site to my “links section”. Thanks & keep up the good work…

    – Scott

  2. kim says:

    That was an interesting article, but I think that investing in the stock market will always be a smart way to go. I prefer penny stocks and there’s an excellent free site that can show people how to invest in the penny stock market wisely. Just go to http://www.pennystocks.com if you’re interested in penny stocks. I think people should always keep a portion of their money in the stock market to keep our economy thriving!

  3. Small caps have been holding up even with the rest of the market on edge over oil and rates.