 |
|
A great opportunity to buy,nothing to panic with
|
I believe health care company and financials are quite cheap to buy.I think it might be wiser to come in to the market and get some health care stocks like Pfizer or JNJ which are in their one year lows.However the credit woes will continue foo a while.However the people invest this week, they might gain when the rumors are out of the picture.The market is having the correcion which has been long overdue.Thw way I see it economy is quite healthy and sub prime mortgage situaton is largely contained.The problem is with hedge funds.In overall, the economy is solid like a rock.
However getting back on the bull will be no easy task this week, particularly after the meltdown stock investors endured over the past two days.The Standard & Poor's 500 and Dow Jones industrial average ended trading on Friday at the week's lowest levels, marking the worst one-week percentage drop for the S&P 500 in nearly five years and the gloomiest on the Dow in five months.
As investors ponder their dwindling returns on the year, big events in the week ahead include the government's sometimes unpredictable payrolls report and quarterly earnings from heavy-hitters such as General Motors and Walt Disney Co.
I expect stocks to consolidate around the lower levels reached on Friday.
Investors will be trying to gauge whether the sell-off has left stocks at an attractive level. The S&P's price-to-earnings ratio of 15.3 on a forward basis put stocks at their cheapest level since early April.
At the same time, based on the S&P's earnings yield of 6.5 percent, stocks present a return that is 1.8 percentage points above the benchmark U.S. Treasury 10-year note yielding 4.77 percent.While some may make the case that valuations are now more reasonable, others are not so sure the worst is over.
Tuesday will also bring the quarterly earnings report from General Motors (While Ford Motor Co. surprised Wall Street on Thursday with its first profit in two years, analysts are expecting GM to report a profit of $1.09 per share, compared with $2.03 a year earlier.
Others reporting this week include Walt Disney Co. on Wednesday and Procter & Gamble Co. on Friday.Tuesday's report from the on Midwest business conditions from the National Association of Purchasing Management-Chicago is expected to show a decline in the index to 58.0 from 60.2.Wednesday has a report from the Institute for Supply Management on the manufacturing side of the economy, as well as data on pending home sales and reports by manufacturers on car and truck sales in July.The ISM has a report on the services sector on Friday. |
| Tarih
: 30.07.2007 |
|
|
View
All |
|
|
|
|
 |
|
Untitled Document
| |
 |
| |
 |
Copyright
© 2006 Mert TOKER All Rights Reserved. |
|
|
