Last quote by Eddy Elfenbein
Eddy Elfenbein quotes
This has been a tremendous rally for bank stocks. I mean, the sector just doesn't normally act like that.
It's not a valuation story, it's an economically optimistic story.
Attacking the issue of pricing … it's a popular bumper sticker, but actually attacking the issue is much more complicated.
It's been a really difficult year for the biotechs – the IBB still a third off its high from 2015, and clearly there's a lot of political risk; people are worried about what would happen with a Clinton victory.
In July when they gave their earnings guidance for Q3, it was $251 to $255, and I'm going to say right now that I think they're lowballing us. I think they will beat that. I think they can go as high as $260 per share for Q3 and I think there's a good chance they'll guide higher for Q4 on sales and earnings.
It's an excuse of convenience. I think it's a good example of companies under-promising so they can over-deliver later.
So if there is a problem, they can say, It's not our fault, it's Washington's fault,' and if there turns out to be no problem, then they beat expectations and then management can say how wonderful they are.
Wall Street "loves excuses that are particularly external.
Don't overthink it; the Fed is on the side of the economy.
This is a great sector; it's the overlooked middle child.
That's why they've been doing well, and if you see the Russell and the small-cap indexes are still a long way from record-high territory. So right now I think the midcap is really at the sweet spot of the risk movement.
Lately with the tech sector, I think the fundamentals have been driving it. It's looking quite good.
A lot of those high-price names, particularly in the financials sector like Goldman, like JPMorgan, they look pretty good here. Also in the tech sector, a lot of those names like IBM and Microsoft [are at valuation levels] that I think [are] pretty favorable.
Dude, a 1.5% rally is a failure?
You had that big move after Friday's jobs report, but that's because the expected rate increase was taken off the table. To keep the rally going, you need to keep having that, and I think there is a view that the Fed is going to raise rates at some point within the cycle.
Higher real rates are a death for gold. So I think in the long term, I just don't see gold having a significant rally going forward.