Ken Heebner just came on CNBC today, and while it did sound a bit like he was licking his wounds, he made some key comments that influence investors. First and foremost, he said "WE HAVE A GLOBAL RECESSION COMING." Interestingly, enough and despite making that statements, he expects the downturn to be short-lived.
Heebner maintains that much of the current market malaise has been froma massive liquidation of hedge funds securities and other funds beingforced to de-leverage. This has also increased the fears ofpeople. He also described the bear market from 1973 to1974. He believes the pressure on the equity market will be relievedafter the liquidations slow or stop, and he believes this sellingpressure can only last for days or weeks.
Heebner was also noting how he is finding stocks at unbelievablevalues. The only individual stock he mentioned was Mosaic (NYSE: MOS),which he noted as trading at 3-times earnings. He bet that margincall departments are probably one reason for the stock’s sell-off..
Heebner noted that in a year the market will be looking to 2010to determine the rate the economy will be growing.
Jon C. Ogg
October 8, 2008
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
