1958 Revisited

Goldman Sachs (GS - commentary - Cramer's Take) lowered its estimate for fourth-quarter GDP to a negative 5% last week and today lowered its estimate for 2009 earnings to $53, but the firm believes that fair value for the S&P is 1,000. The lowest estimate I had heard before today was $60, and many are using $70.

The Hedge Fund Institute reported $32 billion of net outflows from funds during the third quarter, and an "astonishing $40 billion of redemptions in October alone." The outflows from mutual funds are of the same magnitude.

Maybe we should all follow Sydney Williams tomorrow, since he is going to Grandparents' Day at school. For my own self, if I had known grandchildren were so much fun, I would have skipped the kid part altogether.

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Know What You Own: Goldman Sachs operates in the diversified investments industry, and some of the other stocks in its field include CME Group (CME - commentary - Cramer's Take), Morgan Stanley (MS - commentary - Cramer's Take), NYSE Euronext (NYX - commentary - Cramer's Take), Penn West Energy Trust (PWE - commentary - Cramer's Take), Nasdaq OMX (NDAQ - commentary - Cramer's Take) and Covanta Holding (CVA - commentary - Cramer's Take). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.

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At the time of publication, Farrell had no positions in the stocks mentioned.

Vincent Farrell Jr. is chief investment officer for Soleil Securities Group and a regular guest on CNBC and other national print and broadcast media.

Prior to joining Soleil in August 2008, Farrell was a principal of Scotsman Capital Management. Before that, he was chairman of Victory Capital Management of Cleveland and chairman of Victory SBSF Capital Management in New York. He was a founding partner of Spears Benzak Salomon & Farrell, which was acquired by KeyCorp in 1995. Vince held a variety of positions in his 23 years at SBSF, including chief investment officer, and he served as the portfolio manager on a number of the firm's largest client relationships.

Prior to joining SBSF, Vince spent nine years at Smith Barney as a vice president, sales.

Vince graduated from Princeton University in 1969 and received his MBA from the Iona College Graduate School of Business in 1972.