'Dr. Doom' is not the only stock market naysayer Chicago Sun-Times
Many equity analysts not given to chasing headlines agree that the market contains short-term risk. They start with technical charts dealing with volumes and moving averages and factor in the concern about Europe's financial stability. They conclude that, despite Friday's 125-point gain for the Dow, momentum still points to falling prices. And they have learned not to fight "the Big Mo."
Tim Ewing, portfolio manager for Mesirow Financial, said stocks may fall 5 percent to 15 percent. Jack Ablin, chief investment officer at Harris Private Bank, said he sees serious risks in the market over the next three weeks or so.
But these guys and other analysts say many stocks are cheap. Investors with longer-term outlooks have choices even if stocks hold firm.
Ewing said he's keeping an eye on health care, large-cap technology companies and some banks. "Morgan Stanley [MS] is selling below book value. How much can that stock be beaten up?" he said.
Ewing said Merck & Co. (MRK) is "ridiculously cheap, its dividend yield is well above Treasury rates, and the company is growing."
