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Energy stocks (oil, coal, natural gas) have been remarkably weak lately. Chesapeake Energy (CHK), the large natural gas producer, recently hit its lowest price in over 3 years.
Wilbur Ross, “private equity legend and master of the turnaround,” was on CNBC’s Fast Money yesterday. Ross commented on the turnaround potential of natural gas.
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Laszlo Birinyi, Birinyi Associates, is predicting the S&P 500 could reach 1,700 before the end of the year based on historical patterns.
CNBC’s Melissa Lee asked Birinyi what he saw that was similar between this year’s market and the ones in 1982 and 1990. Birinyi responded that they were markets that got off to a very strong start. He indicated that since 2009 the best gauge of the market has been historical patterns.
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Wharton professor and author of Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long Term Investment Strategies, 4th Edition
Commenting on this week’s Barron’s article by Gene Epstein speculating that the Dow could hit 15,000 by the end of next year, Siegel believes the most convincing argument is valuation. He said we are well below the long-term average PE ratio of 15 when taking into account interest rates.
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Byron Wien was on CNBC today providing his outlook and surprise predictions for 2012. According to host Bill Griffeth, Wien got 8 out of 10 predictions correct in 2011 (link).
Wien was too optimistic on the stock market (S&P 500) which he saw rising to 1,500 and too pessimistic on the 10-year government bond (yield above 5%).
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Becky Quick of CNBC interviewed economist Ed Yardeni, president, Yardeni Research, this morning. Yardeni said he feels the stock market is a bargain with the forward P/E on the S&P 500 being about 11.5. He added the average historic P/E is 13.5, while only half a year ago 14 to 15 seemed normal.
Yardeni considered the U. S. a safe haven for equity investors as it has been outperforming the global markets. Quick asked Yardeni if he still thought the S&P 500 would be at 1,350 by the end of the year.
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Marc Faber, publisher of the Gloom, Doom and Boom Report, was interviewed by Joe Kernan on CNBC yesterday and provided his views on liquidity, the dollar and the Occupy Wall Street protests.
Faber said he is looking for continued volatility although it wouldn’t necessarily be to the downside. He was fairly certain the U. S. dollar would continue to be a good long trade.
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Stocks May Already be Priced for Recession: Abby Joseph Cohen
August 22, 2011Abby Joseph Cohen, senior investment strategist, Goldman Sachs, was on CNBC Friday giving her usual happy talk. She did make one observation that does have some basis in reality when she stated, “our feeling is the valuation of the U.S. stock market is already pricing in a rather ugly scenario.”