Billy Ford

Todd Salamone: Stock Uptrend Intact, Expect No Sharp Pullback

Its funny how people like you are saying that bad news is already built into share prices, but yet we are at 19x earnings. We saw decent earnings compared to ULTRA conservative expectations only on cost cutting. I would guess that the results of cutting costs were Q2, so Q3 better bring some increased revenue to the table which I am very skeptical. This stock market is propped up on the fact that we think people will begin to go out and spend. With real estate still in the dumps, record foreclosures, unemployment at 9.7 and climbing, I am highly skeptical of people rushing out to buy anything. This consumer deleveraging process will take a few years to say the least. It is easy for people to jump on the equity bandwagon when there is a 7 month rally, but you will be the first ones to change your view once you realize that we were simply having a correction to the upside. I dont foresee any sharp legs down, but do believe we are in for a slow decent down from here over the next 6-9 months. What is going to move us up from where we are now besides increasing multiples?? You would have to be crazy to buy into this market right now. I would much rather miss a move higher than to get slammed in the next 6 months.