Managers See Reasons For Optimism
Managers See Reasons For Optimism
Thursday November 16, 7:00 pm ET Trang Ho
When the Dow hit the 12,000 milestone last month, it raised the question of how much higher the market could go before a bear rampage. Several top managers figure the bull still has a ways to run.
The Dow would have to rise to 12,600 -- an additional 2.4% -- to reach fair valuation, says Neil Hennessy, CEO and portfolio manager with Hennessy Management. That's before factoring in a positive outlook on corporate profits, unemployment, inflation and interest rates.
At the start of the year, he foretold the Dow hitting 12,000 in October. He uses price-to-sales ratios to determine whether stocks are cheap enough to buy.
"The Dow, on average, sells at approximately $1.25 for each $1 in sales," Hennessy noted. "And that's over the last 10 years. Today it sells about $1.20 to $1 in sales. So the market is still undervalued by 4%."
.......... ...................
Thursday November 16, 7:00 pm ET Trang Ho
When the Dow hit the 12,000 milestone last month, it raised the question of how much higher the market could go before a bear rampage. Several top managers figure the bull still has a ways to run.
The Dow would have to rise to 12,600 -- an additional 2.4% -- to reach fair valuation, says Neil Hennessy, CEO and portfolio manager with Hennessy Management. That's before factoring in a positive outlook on corporate profits, unemployment, inflation and interest rates.
At the start of the year, he foretold the Dow hitting 12,000 in October. He uses price-to-sales ratios to determine whether stocks are cheap enough to buy.
"The Dow, on average, sells at approximately $1.25 for each $1 in sales," Hennessy noted. "And that's over the last 10 years. Today it sells about $1.20 to $1 in sales. So the market is still undervalued by 4%."
.......... ...................
posted by Blue @ 10:56 PM
<< Home