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发表于 2009-5-4 10:24 AM
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'Smart money' starts to bail on stocks' rally
11:24a ET May 4, 2009 (MarketWatch)
NEW YORK (MarketWatch) -- Fresh on the heels of another strong month of gains, market behavior is close to exuberance, say "smart-money" strategists, who see such signs such as rising participation and positive reactions to most news as a tell-tale sign that it's time to take money off of the table.
"Just like when too many participants bet on the same horse the betting odds on that horse go down, the 'betting odds' of making money in the short-run have been greatly reduced after eight weeks into this upside skein," says Raymond James market strategist Jeffrey Saut in his latest research call.
"We have made a lot of money over the last eight weeks and continue to think the trick from here will be to keep that money," he said.
On Monday, stocks received another upward jolt, after a report showing a rise in pending home sales in March fueled ongoing optimism about a housing and economic recovery.
The Dow Jones Industrial Average was up 170 points, or 2%, at 8,381. The S&P 500 index rose 17 points, or 2%, to 1,747, and the Nasdaq Composite gained 33 points, or 2%, to 1,752.
But veteran investing advisors, such as Pimco strategist Bill Gross, believe the market's recent hopes over an economic recovery might be overdone.
"Do not be deceived by the euphoric sightings of 'green shoots' and the claims for new bull markets in a multitude of asset classes," Gross wrote in Pimco's May outlook. "Stable and secure income is still the order of the day." |
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