Kevin Caron Quotations

There's a growing realization that technology is where earnings growth is going to show up. Investment spending drives earnings, and it's going to technology,

You've got a decent summer rally under way with good breadth in the marketplace and, mostly, that's attributable to the fact that fear over what the Fed could do to the economy is abating and that helps all sectors.

We've held out that, as you move through the third-quarter earnings, the companies that report will show strong growth, ... Stock prices have been so compressed that it give investors reason to step in and pick up stocks at depressed prices.

You had tremendous output by the chip companies in the second quarter. During the third quarter you had some concerns about capacity issues and shortages of certain components, ... We're getting a better sense that they're dealing with the issues and that perhaps the supply shortages won't be as difficult as people initially thought.

Right now the market is digesting some very good gains it's had over the last year,

The days of multiple expansions due to falling (interest) rates are largely behind us so when it comes to portfolio management, the old strategy of just 'buy the index' doesn't work anymore, ... What you're really coming down to is going back to a very old fashioned stock-by-stock approach to putting together a portfolio.

When we get beyond the Fed's decision in August, it then opens up the opportunity for technology to assert itself because of its strong earnings growth and take the market to higher highs and higher lows.

Oracle had gotten to valuations that it probably didn't deserve yet and the sell-off is a reflection of concerns over valuations. It's still a very good software company. We expect a little slower revenue growth but overall, they are an impressive company.

I think the market is going to be in a position to rally going into the events of next week,

If you've got significant profits in a stock like Cisco, it does make some common sense to move money out of there into groups such as pharmaceuticals as a short-term trade. This is more of a rotation rather than anything else, ... Until the Fed registers its vote at the end of August, I think you just see more of the same - a lot of churning and going nowhere fast.