Hugh Johnson Level Quotations

The stock market rally today is because we drove the market down to levels that were on the cheap side and when you get news like the leading indicators saying things are going to be good for the economy and profits, that attracts buyers.

The most important thing is that the stock market had declined to levels that were arguably undervalued, and that many aggressive managers also realized there was a great deal of pessimism.

If you separate out all the sectors of the market, it's no longer the case that technology is the most overvalued sector of the market, health care and energy actually carry higher valuations than technology now. So we are starting to get the levels overall in technology that really make some sense. And interestingly enough, if you take it even further, if you go to the individual stocks, stocks like Sun, Cisco, Texas Instruments, Oracle -- great names, they're starting to get to levels which, again, don't call them cheap, but call them cheaper and interesting,

It has been a solid performance, but there's still a healthy level of skepticism because stocks aren't cheap right now.

If there's no bounce, it's investors saying that the market has not reached a level that accurately reflects what's ahead for the economy and earnings.

We got down too far too fast. You reach a level that attracts buyers.

On the surface level it's a real simple story. Interest rates are rising and the outlook for the economy and earnings is darkening every step of the way.

The price is down some, but it's clear that oil is at a level that raises serious questions about the U.S. economy and earnings going forward.

Long term interest rates are higher now than they were in the second and third quarters, and debt levels are higher too. Yes, consumer spending will continue to expand, but it will be slower.