“Models work when they are appropriate for the particular circumstance, but some of the best investment judgments over time have come when people recognized that models derived in other periods were broken or not directly relevant.”
“Data suggest that economic activity has bottomed and that the worst is now being reported for corporate profits. As such, stock price gains are expected to continue, supported by improvements in corporate performance and mild-mannered inflation and interest rates.”
“I think what we had today was a disconnect between the stock market and the economy. The U.S. economy looks great...corporate profits [are] good...inflation and interest rates will be friendly for longer.”
“The basic conclusion is that 1999-2000 will bring further gains in corporate profits, mild-mannered inflation and a generally favorable outcome for equity prices. Increasing confidence that the economic expansion will continue through our newly-extended forecast horizon encourages a modest upward revision in stock price targets.”
