Richard Bernstein Quotations

We remain doubtful that the Fed is indeed 'done,' which has become the overwhelming consensus. We believe they will be more vigilant against inflation.

What we're seeing today is a relief rally from last week, ... There is really nothing to hurt the market today. All the techs are rebounding well.

Lower quality companies are dramatically overstating their growth rates by using pro forma earnings.

Returns on capital are highest where capital is scare.

People who want to watch the Fed need to be very careful,

Policy makers seem to continue to believe that they can boost demand enough to alleviate the oversupply situation. They now talk of extraordinary monetary measures and huge tax cuts to stimulate demand, ... Although their timing was admittedly very poor, Japanese policy makers attempted the same thing.

Portfolio managers should answer the question regarding the potential for deflation by saying that we are already deflating.

Because of the lack of pricing power, earnings expectations might be too optimistic, despite the fact that they are being lowered.

From our lens, the U.S. housing market has become seriously overextended and a correction looms, posing the largest risk to 2006 consumer spending.

I don't think people realize the market has been flat for the past seven years ? people don't realize that because there have been big ups and downs. But without market volatility, the market hasn't done much.

Today all you're probably seeing is a weakness prior to the G8 meeting this weekend, and a lot of uncertainty in Indonesia and Asia,

Historically, S&P 500 earnings growth, on average, has been negative when the dollar has appreciated 10 percent or more in a 12-month period.

History suggests that the most powerful factor influencing the profit cycle is pricing power.

There are some unquestionable areas where it has been studied and shown to have benefit in very particular areas, for example chiropractic care.

Our students just got hit with an 18.5 percent increase in tuition, and now gas prices are causing a crisis. We are going to lose students on the edge. They cannot deal with all these increases all at once.

I think many investors have failed to make the link between global growth and the U.S. housing market. The U.S. consumer remains 20 percent of the global economy, and a slowdown in housing and, in turn, U.S. consumption could hurt emerging market exports.

The 1-year T-Note rate is now rising at an extremely fast pace relative to dividend yields. Historically, this has been a reliable signal that cash might outperform stocks.

Most individual investors get caught up in the hype. They forget that the constant reinvestment of dividends can be a huge component of building wealth.

We continue to believe that there is considerably more downside risk than upside risk to the equity market,

We continue to believe that the market is riskier and more speculative than most investors believe.

We continue to believe that longer-term investors should focus on yield.

We are truly amazed by this incremental bullishness.

We have commented that there is a thin line between a liquidity-driven market that anticipates improving fundamentals and a bubble. The equity market may have stepped over that line.

The quality of earnings is the poorest in my career.

There is a thin line between a liquidity-driven market that anticipates improving fundamentals and a bubble,

The day that you should be concerned about the market is a day when there is no fear about what's going on. Certainly we have innumerable negatives that people can point to right now. I would argue that's actually quite healthy.

What we're seeing today is a relief rally from last week. There is really nothing to hurt the market today. All the techs are rebounding well.

There has been record insider selling within the last 10 months across a broad range of homebuilding companies despite very few sell ratings by Wall Street analysts and the general perception by investors that the stocks are undervalued.

We think there is a strong contrary message, ... at a record pace across nearly the entire industry.

Two of Michigan's greatest institutions can be connected by rail.

We think it is now time for investors to switch from income statement variables to balance sheet variables when picking stocks, ... Portfolios in which stock selection was based on strong balance sheets tend to outperform those based on income statements when the profits cycle decelerates.

I've been passionate about this ever since I came on the board; transit is a huge issue for me.

S&P 500 valuations, by some measures, are near or at all-time highs,

Private investors are usually late to the party.

People used to build wealth through building equity in their homes. Today, people prefer to speculate on the price of their house by using historically high levels of leverage.

People say these companies are closely held and that the executives are trying to diversify, but why now?

The more generators sold, the more consumer confidence has been hurt, as this would tend to indicate that people do not trust the infrastructure currently in place. If, however, consumers shrug off the ... situation and relatively few generators are sold, then this would be perceived as a positive.

The big telecoms still have to be among the most disliked stocks in the world. They are so under-owned that if we see a continuation of more good news than bad, the stocks will perform quite well.

Stocks with significant foreign exposure should help to support stocks. If the dollar continues to fall and commodity prices remain strong, then earnings are likely to be stronger than investors currently expect.

It will be interesting to see if these companies' misfortunes are indeed attributable to weather and temporary, or perhaps better attributable to the Fed and slowing economic growth.

They could have diversified their holdings 2, 5 or even 10 years ago.

At the rate it's going right now, profitability will accelerate, but at a very, very slow pace, ... much slower than what's implied by valuation in the market.

If you're in the equity market, you want to focus on the largest cap, highest quality companies,

The market might reward some companies during the second half of 2004 for producing better-than-expected earnings because of the tax windfall, ... but history suggests that the market will penalize those same companies if their earnings decelerate in 2005 from 2004's tax-induced growth.