The consumer may be running out of power, homebuilding is slowing, oil prices are remaining high, and short-term interest rates are going up. That's an awful lot coming together at the same time that could pressure stocks.
More Quotes from Jim Melcher:
Something like this news is the sort of catalyst that ought to spark a terrific rally now, but the question is will it sustain itself And that's not at all clear. Certainly in '98 when the Fed did this you had a rally that lasted a year or two. I think we're going into a rally right now,Jim Melcher
the market is, and has been, for the last five years driven by about the same 100 companies, but if you could see money moving down to the broader market, we've got some real values, a lot of good companies selling really cheap.
Jim Melcher
This is the greatest stock-buying mania of all-time, people are buying stocks, they're buying blue chips, with no regard to value. In this respect, it's similar to 1929. People believe that as long as you're buying, everything's fine. This is a dangerous market, you should make no mistake about that.
Jim Melcher
I think it's a combination of the oil prices and GM today. There's been a heightened focus on inflation recently, and energy prices are a major component in inflation.
Jim Melcher
I think the market is at a balance point here and that we are likely to drift over the short run.
Jim Melcher
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