In the current market psychology, worse is just one step closer to being better.
Senior Analyst and Money Manager,
|Recent Daily Interviews|
With fundamentals such as the resumption of demand for networking gear and enterprise software still a year or more away, Rezaee thinks the market is close to seeing its worst days. Soon, he says, people will be willing to call certain stocks bargains. But unlike the market upswing of 1999, Rezaee says we're wiser this time around and will stay more attuned to valuation.
TSC: So Bob, last week
Rezaee: I think we're getting close to a short-term bottom. Prior to the events on Sept. 11, it looked like consumer spending would eventually buckle as more people were laid off over the next few months. But we had a sudden exogenous shock -- sort of a crescendo of bad news -- which caused panic and fear. Monday was just a reflex rally.
TSC: What's next?
Rezaee: I still sense a lot of panic and fear. People who were hoping for a silver lining gave up after the events two weeks ago. But what I like now is that all across the board stocks are looking like tech stocks -- they are all in a free fall. And with more bad news coming in the form of profit warnings and more layoffs,