Patricia Chadwick Quotations

We're in a zero-price environment. What really allows companies to earn is to cut costs and be in growth sectors of the marketplace.

Now we want to hear companies say they have light at the end of the tunnel.

Obviously, the housing market has benefited them, but they're also doing other things. They're also selling some higher margin products, and you can go in and get the upscale products that you need. This company also has done some amazing changes in the last few years: getting their working capital down relative to sales, getting a better return on their investment.

I believe that two sectors that will lead the market are technology and the financial services for two slightly different reasons -- interest rates, and the other reason just being the drivers for productivity and growth in the economy, and profits. And I don't think that that has changed. I think it's one of the things that is really important about technology. Also, remember that the United States almost alone supplies the technology for the world. We produce just about all the new technology. Do we manufacture all of it right here? No. But we are the driver and the rest of the world needs our technology.

If in fact the OPEC countries can get together and cut supply, that would be great. I think what tends to happen is when we hear these kinds of announcements, oil stocks do extremely well and yet the truth is somewhat a little less exciting than what the announcement comes out as. But I think definitely they need to cut supply -- there is a glut of oil around and anything they can do should help the oil stocks.

I don't think we're in a correction but I think we're in a very necessary leveling off period. A correction is probably over 10 percent down from the current levels and I don't think there's any reason for us to see that, but I do think given that the fact that the markets went up 7 or 8 percent in less than two months of the new year that we have to have perhaps have a couple of months time when the market doesn't go anywhere.

We're probably in a quiet period, maybe even a bit of a pullback. But I think if you're a long-term investor, the environment remains good and I would definitely remain in equities.

Goldman Sachs and Morgan Stanley are two stocks that I think are attractive here. Those stocks have been under pressure as interest rates have been rising. I think we may have seen the high in interest rates for a while, and I think that could help the whole sector.

We may be setting ourselves up for a rally in the new year. We'll have a lot of announcements in the very early part of January from companies, which will point to some more disappointment in earnings, and that may be a catalyst for the Fed to lower rates by the end of January.

I think that, globally, investment banking is going to be a huge opportunity for the business. We're just seeing a huge amount of activity, and I think that falls right into benefiting the large brokerage firms.

I think a lot is happening in the PC business that I think bodes very well for PC demand and they are kingpin, in terms of being able to produce profits in the PC business. So I think they are the leader for the PC companies and I think that that's where you need to look to them.

I think we are seeing a second round of layoffs if you will in some large corporations. We're also seeing a lot of mergers and acquisitions. And the other thing that we're seeing is: corporations putting their capital where they can get the best return, and often that is outside the U.S. for low wage jobs... inside the U.S. for high wage jobs.

I think technology is the driver for the productivity gains, for the earnings growth. If technology stocks don't do well in this market, you don't have a market moving forward, and I think they are doing well.

I'm still very optimistic about stocks, and I think that's where you have to be. But I think it needs to consolidate. And actually, yesterday in the market, the Dow was a lot stronger than the rest of the market.

We have been waiting for European recovery, and it's been slow in coming. I think it is coming, and I think that the merger and acquisition activity in Europe is going to drive corporate profits higher. So I think there are some real opportunities in Europe.

The prospects for tech did not suddenly deteriorate. In fact, tech earnings have been very good.

We saw how fast those stocks could fall.

There definitely seems to be some broadening out of the market. We're seeing earnings in other sectors that we haven't seen before.

Right now, we're just digesting. The market is waiting for companies to start saying that future quarters are going to look better.

It's just another number that the market will go through.

The auto companies have done really well and I think it's hard to see a continuation of that for a long period of time.

If rates keep backing up we'll definitely have the stock market treading water for awhile.

In the short term, I think there are some good signs that the Fed will raise interest rates.