DJ Merrill Lynch's Doll Sees 'Stealth Bull Market' NEW YORK (Dow Jones)--Robert Doll, chief investment officer at Merrill Lynch Investment Managers, sees a "stealth bull market" in the works. In other words, the average stock in the Standard & Poor's 500 is about 10% ahead of the index itself, Doll said in a CNBC interview Monday. Commenting on the market runups Friday and Monday, Doll said he believes there is "more to this rally," but that further upside will be dependent on good fundamentals. "Most indicators are on the plus side," and corporate earnings should see improvements as well, he said. "I think it will take time for fundamentals to catch up with prices. ... The market is not particularly cheap," he said, forecasting that earnings will catch up during the second half of the year, while markets will stay relatively flat. -By Ellen Sheng, Dow Jones Newswires; 201-938-5176 <img src="http://www.joeslist.com/PICTURES/continental043002.jpg"></img>
wonder how long he has been saying that.don hayes has been saying we are in a new bull market since january.eventualy they will be right.lol
I normally read, chuckle, and move along after reading articles like that but for some reason today I decided to say what I think. "but that further upside will be dependent on good fundamentals. "Most indicators are on the plus side," and corporate earnings should see improvements as well, he said. The most recent economic reports are BARELY on the upside and some have fallen back a step or two......gimme a break! "I think it will take time for fundamentals to catch up with prices. ... The market is not particularly cheap," he said, forecasting that earnings will catch up during the second half of the year, while markets will stay relatively flat." What brilliant forecasting! Lemme see if I can translate this being a humble trader and not a hotshot analyst: Eventually fundamentals will catch up with prices = the economy will complete its next cycle like it has for decades. The market is not particularly cheap = Could the sky high P/E's clue you into to this previously unknown concept? forecasting that earnings will catch up during the second half of the year, while markets will stay relatively flat = Reading through some of the updated guidence tells anyone this and the market staying relatively flat will certainly be true for the summer like it has been every summer for ages. Not that anyone here is probably impressed with analysts but I'm always amazed at the combination of stating the obvious along with out and out lying about how they feel a stock will do is eaten up as oracle like knowledge by uninformed investors. I'd have to go through my old notes for the symbol but a couple months ago I was doing some research on a stock trading at $19.00 / share (down from $70+ 52wk. hi) and happened to see the analysts ratings and forecasts for it. Several had it forecast to lose 20cents a share the next quarter and 50 cents for the year. On the very same page these same analysts had price targets ranging from $30 - $50 a share and buy - strong buy ratings. So the stock is projected to lose money like a bleeding pig but its a strong buy with 50-150% upside potential? It was a tech stock with close to a 3 digit P/E. Makes me sick because people believe what these morons say and lose their butts.
'stealth bull market' gets me. it's there but it isn't. and fundamentals have to improve. news flash. im probably reading it wrong, but it seems like a study in ambiguity. in one sense, though, the very high pe's suggests it is a sort of bull market (at least by that measure, if prices aren't going up).