While money manager Mark Lamkin agrees Q1 earnings give investors cause to buy stocks, he's...


While money manager Mark Lamkin agrees Q1 earnings give investors cause to buy stocks, he's bracing clients for rising costs of energy and raw materials to hit earnings deep into the second half of the year. "You’re setting up this market for a pretty big correction," he says, expecting a 12%-14% tumble.

Comments (10)
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    We get at least 3 to 4 selloffs a year...we have had one ( Japan)
    another one coming lin Summertime probably...I am not sure about the
    12 to 14% variety...
    20 Apr 2011, 02:17 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3465) | Send Message
     
    We have already heard dire warnings about the current earnings season. The numbers must be rigged. That's the only explanation. It can't be an improved economy. It just can't.
    20 Apr 2011, 02:21 PM Reply Like
  • That_Guy
    , contributor
    Comments (72) | Send Message
     
    thats said...wheres the safe house....? Silver, Gold, Tech, Travel, REIT......any ideas anyone?
    20 Apr 2011, 02:33 PM Reply Like
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    Silver is parabolic.....parabolic is very hard to trade....note this article

     

    seekingalpha.com/artic...
    20 Apr 2011, 04:23 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (8640) | Send Message
     
    Maybe from the 1450 level back to 1300. Don't see how the market drops 13% from current levels. How is a market with earnings equal to 2007 levels suppose to be worth 25% less then 2007 peak?
    20 Apr 2011, 02:35 PM Reply Like
  • Ken Solonika
    , contributor
    Comments (164) | Send Message
     
    I predict that many will predict a pullback of 15%. Then if it happens they will claim that they were right, even if the trading and opportunity costs are greater than the 15% pullback.

     

    Many were predicting a pullback at 10,500. Now at 12,400.

     

    That's greater than 15%.
    20 Apr 2011, 02:45 PM Reply Like
  • nightfly
    , contributor
    Comments (1015) | Send Message
     
    Simply because earnings have peaked. This is as good as it'll get for some time.
    20 Apr 2011, 02:45 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3465) | Send Message
     
    And you know this how? Because you want them to peak?
    21 Apr 2011, 06:51 AM Reply Like
  • Tack
    , contributor
    Comments (15965) | Send Message
     
    This is what guys always say when they have no idea what really is in store in near-term months, when it really will all be decided. They tell you we'll have some "big" pullback, many months away, which, of course, tells you absolutely nothing about what to do with your money, now, or why. Nobody will even remember their forecast six months from now.

     

    It reminds me of living in Florida and being told that the "next" hurricane season will be a "bad one." I do live in Florida, and they've been saying that each and every year since 2004, when a bad one actually did happen. Someday, they'll be right and say, "I told you!" even though they were persistently wrong and clueless.

     

    If QE ends, and there's no radical effect on the economy (which, personally, I believe is quite likely, despite all the hysterical doom-laden predictions), then, what's more likely to occur is that lots of money will come flooding out of gold and commodities, which along with expanded private-sector lending by banks, could send this economy and the market to new highs that aren't even contemplated, now.

     

    The conviction that this can't and won't happen by all the QE phobics makes this possibility seem ever more worthy of consideration. I've made a good living betting on contrary outcomes, and, to me, this is setting up as another one that looks quite possible, if not likely.
    20 Apr 2011, 03:13 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3465) | Send Message
     
    QE may very well end with a wimper. Tack. If anything, the effects will have already been built into the market out of sheer fear. S&P came out with their warning and the market tanked for a day and all I read was "See, see, I told you! The end is near!" Well, two days later........
    21 Apr 2011, 06:53 AM Reply Like
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