Denis M. Horrigan, director, KR Wealth Management, Farmington, Conn.
Bearish or bullish: Cautiously bullish
His take: "The markets are digesting some troubling news domestically and from Europe. The U.S. economy is entering a difficult transition, from a patient that was on life support (government stimulus, low rates) to one that is trying to breathe on its own. This usually leaves the markets very sensitive to any bad news. We feel the markets have become oversold, just as we thought they had become overbought a month ago. The growth in the euro zone has been revised down recently and that gives cause for concern, but the GDP growth estimates in China, Brazil and the U.S. have all been revised up. Thursday's employment numbers surprised to the downside, but it's important to keep in mind that the private sector has added jobs in five of the last six months. We are definitely defensive and skeptical, but we do not feel this is the beginning of another severe bear market."
Mark Luschini, chief investment strategist, Janney Montgomery Scott, Pittsburgh
Bearish or bullish: Bullish
His take: "We view this correction as an opportunity rather than the beginning of a move toward bear-market territory. We have taken the position that the fundamental underpinnings for the economy, and therefore corporations, are strong enough to support an improving climate for profits. As a consequence, we still view equities, on balance, as an attractive means of growing capital in this environment. We have not, however, deviated from our theme of buying shares in the higher quality companies that exhibit the characteristics of large capitalization, low price/earnings, high free cash flow, clean balance sheets and handsome dividends. The decline in the stock market we are experiencing has helped to bring more of those companies back to price points where investors should be comfortable making purchases."
Howard S. Gartenhaus, founder, Gartenhaus Financial, Rockville, Md.
Bearish or bullish: Bearish
His take: "This is not the beginning of a new bear market. We have been and continue to be in a long-term secular bear market that began in 2000. The shorter-term cyclical bull market that started in March 2009 was an upside correction that has apparently ended as of April 23, 2010. The potential is there for a significant retracement of the gains that were made over the past 13 months. This time around, the culprit is the European Union. Just as we were told that subprime was a small part of the financial system and not to worry, I believe the euro problem will cause systemic risk going forward. I do not believe that we will breach the lows seen in 2009, but we will drop more than 20%, which is considered a bear market by many definitions."
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