Sunday, May 11, 2008

How to Tell if a Rally Is Real

“This was certainly a market bottom, and a pretty good market bottom,” said Duncan W. Richardson, chief equity investment officer at Eaton Vance, the asset management firm in Boston. “But I don’t know if it was the bottom.”

“It’s our significant worry that corporate profits in the nonfinancial part of the system are likely to be weak over the next couple of years,” Mr. Inker said. “If we’re right, and corporate profits are going to start to deteriorate outside the financials, it will cause another round of problems.”

Apture