|
May 2005
“Technology, pharmaceuticals, and biotech are probably the places to be.” – Peter Cardillo, Chief Market Analyst, S.W. Bach
May 2005 -- Peter Cardillo, chief market analyst with S.W. Bach, has been asked to provide his economic and market opinions for (among others) CNN Money, Forbes, MSNBC, the BBC, Fox’s Neil Cavuto and The Dow Jones Newswire. In this month’s Investor Incite Mr. Cardillo is of the opinion that we are in the midst of a tech industry resurgence. In the overall financial market, Mr. Cardillo believes that, “stocks will outperform the bond market over the next six months and within the stock market the tech sector is a good place to be. We have not gotten to the point where tech is outperforming the homebuilding sector, but going forward it may regain leadership”.
“We are seeing a rotation out of the energy and commodity sectors and moving back into technology again,” said Cardillo. “A stronger US dollar will prove positive for this sector as imported technology becomes more expensive. The US will increase domestic sales and manufacturing as the dollar strengthens compared to Asian currencies.”
Cardillo believes that the economic slowdown is going to be short lived and that the Federal Reserve will continue to raise interest rates, right into the latter part of the third quarter, leading into the fourth quarter. “The bottom line is that the Fed is staying ahead of the inflation curve, therefore the economy can continue to grow. Once the Fed neutralizes funds and get things back to a more normal level we can continue to grow and to keep inflation from getting out of hand. This is a positive scenario and I suspect that somewhere along the line the market will begin to reflect that.”
Cardillo said that favorable news from companies like Dell and Intel is driving the tech sector and is aiding the rotation out of energy and commodities. Subsectors within tech that could provide profitable opportunities for investors include semiconductors, which Cardillo said may just outperform the whole.
“In the next six months, technology, pharmaceuticals, and biotech are probably the places to be. Places to stay away from would include energy, commodities and homebuilding. I think that we are starting to peak out in the homebuilding sector; we have had nothing but good news from that sector and I believe that at some point soon it will turn negative.”
Bio: Peter I. Cardillo
Peter I. Cardillo is the Chief Market Analyst for S.W. Bach & Company. Mr. Cardillo is a regular commentator on various U.S. and International business news media, like Bloomberg Radio and Television and CNBC World. He is regularly consulted for his opinion about the market by major national newspapers throughout the country including The Wall Street Journal, USA Today, New York Times, and Consensus Financial Weekly. In addition, his comments are published weekly on Marketwatch.com, Reuters, CNN Money, TheStreet.com and other internet business publications. With nearly 30 years of analytical experience and 42 years in the financial services industry, Mr. Cardillo is a well respected market commentator.
For the past two years, Mr. Cardillo has been employed by S.W. Bach & Company, a full service brokerage firm with offices located in New York City and Long Island. Previously, Mr. Cardillo was employed by Westfalia Investments for 13 years and Josephthal & Co. for 27 years.
Disclaimer:
www.InvestorIdeas.com/About/Disclaimer.asp
©Copyright InvestorIdeas 2005
|
|
