Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, July 27, 2007

Article Excerpt

We pride ourselves on giving our clients well-researched investment advice, plus a rational, conservative investment philosophy that has served investors well for many years, through good and bad markets. However, I always have an opinion on the market outlook and I’m happy to share it with you. My view is that the market downturn that got going this week could carry on till October and knock another 5% to as much as 15% off the market indexes. My guess is that the damage will be greater in speculative areas. Risk is always higher in speculative stocks, and prices of many speculatives have risen out of proportion to value. Of course, I could be dead wrong – nobody can consistently predict market trends. If I’m wrong, my best guess is that I’ll err on the negative side – that is, the market downturn will fall in the lower end of that 5% to 15% range. I don’t think it makes financial sense…