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The rally hasn't shaken Morgan Stanley's Adam Parker from sticking to his projection that the...

The rally hasn't shaken Morgan Stanley's Adam Parker from sticking to his projection that the S&P will end the year at 1,167; he sees earnings coming in lower than sell-side analysts expect. But he believes investors can ride out the storm through health care and energy stocks such as CAH and SLB, as well as a select group of other names including JPM and FCX. (earlier)
Comments (6)
  • bbro
    , contributor
    Comments (9330) | Send Message
     
    S&P at 1167,,,,all of these stocks would be underwater from here...
    14 Aug 2012, 08:40 AM Reply Like
  • convoluted
    , contributor
    Comments (1832) | Send Message
     
    Yeah- that's a good one-ride out the storm in oil and copper. At 1167 FCX will drop 40% (recall that it's still not cheap/split recently misleads people) SLB would drop to low 60's. Better to ride out the storm on one of those mechanical bulls (or heaven forbid, sell DITM calls on positions, or just short).
    There's a lot of humor in the financial media these days.
    27 Aug 2012, 01:47 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (17883) | Send Message
     
    If the market were to do poorly, FCX wouldn't do well. Indeed, FCX will have trouble doing well even with the market doing well if copper doesn't participate due to China's transition away from investment-led economic growth.
    14 Aug 2012, 08:40 AM Reply Like
  • alphaman
    , contributor
    Comments (157) | Send Message
     
    Mr. Santos:

     

    I agree. I have lately seen the strangest arguments as to why one should buy FCX now. The best one was that "You should buy before the price of copper goes up".
    14 Aug 2012, 03:33 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (17883) | Send Message
     
    Copper actually seems more likely to head down (barring any quantitative easing).
    14 Aug 2012, 03:36 PM Reply Like
  • Craig Beresin
    , contributor
    Comments (5) | Send Message
     
    The idea to ride out storm with cyclical names like FCX and SLB is strange. Historically, a name like FCX and others in base metals underperform during market sell offs. I will not get into how a large cap bank like JPM would perform in such a scenario. Utilites might hang in better. Cash would be ideal for his scenario.
    4 Sep 2012, 03:52 AM Reply Like
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