Subodh Kumar Quotations

We are seeing a pullback on stocks because many investors are concerned with the outlook for interest rates and with the economy at the start of 2006. The rebound in oil in the past couple of days is also hurting some stocks, especially the ones related to consumer spending, such as retailers.

I think that the objective of the interest rate hikes is to keep the economy in the 3-1/2, maybe 3-3/4 range. So the Fed has been saying all along, give us 12 months from when we start to raise rates and we'll get the trajectory down. And I think that's what they've done.

It is not known whether the passengers are safe or have been robbed.

I think we're in a situation where some earnings will miss (forecasts), but not as much as some bearish people expect. If this is the case, the S&P 500 is likely to remain in the trading range it's been in.

Over the next year, markets will be higher, but in November and December we may be in something of a trading range. Markets have already incorporated the improved earnings, and to an extent, the economic improvements.

People looking toward putting money into the banking stocks have taken it out of the resources as opposed to taking it out of things like BCE and Nortel,

Usually, the groups under stress bounce the most at a bottom since they would benefit the most when the economy improves,

The rebels have melted into the jungles and we are now helping the terrified passengers, including, women and children vacate the area.

With close to 20 per cent of the S&P 500 companies having reported, year-over-year operating earnings growth for the third quarter at 14.9 per cent appears in line (versus above consensus for recent quarters) but still good,

Very high short interest numbers could be a positive for the market since it suggests this market rally was not expected by bears. If the market has recovered, then people have to cover their short positions, which means there will be more buying power.

I see volatility until the end of the month. With earnings season near and energy prices high there will be volatility.

Sooner or later it will be appropriate for the Fed to pause, regardless of whether or not we get a signal in that direction. There is no reason for them to invert the yield curve. Inflation is contained and the economy is okay. I don't see a reason for them to take the risk of keeping raising rates.

Companies and analysts were badly burned in 2000 and 2001. So now if there is any negative news, it behooves companies to get that into the marketplace earlier,

It's easy because the euro is so visible. And besides, in the tech sector, you can't really blame oil prices.

It's easy because the euro is so visible, ... And besides, in the tech sector, you can't really blame oil prices.

It may be simply part of the maturation process of becoming an international company. But as an individual investor, you should think about whether you want to be in a company that makes these kinds of mistakes.

If you look at things in a one- or two-year time frame, they are not as bad as they seem but executives are emphasizing the here and now.

In the very short term, you are seeing a response to the economic news, and that can give the market some buoyancy. Whereas in September and October, the above-consensus earnings enabled the market to perform better than it traditionally has, in November the focus switches to the economy.

In the last few months, there's been a lot of volatility. I look for less volatility in the markets. And I look for the leadership to evolve to the following areas -- where the rates stay in check - the banks, the utility stocks - those do very well, and financial services and utilities. And the second area that I would look for to do better would be companies with real earnings but relatively low multiples, and examples of those are the communications companies and semiconductor stocks,

Generally, I don't think it will be a damper on earnings. There are some things you can measure like near-term revenue loss because restaurants have been shut off and stores have been shut off. But if you look at previous disasters like Hurricane Andrew, the expenditure on replacement of homes and capital goods and spending on things like supplies for workers was quite strong.

For the market to head higher, investors need to have confidence that oil prices will stabilize and move below $40 a barrel. If oil stays at current levels, the market will be tentative at best.

This is more a readjusting of expectations as opposed to a readjusting of the economy.

The euro has been going down for two years, so I have to wonder if these guys are keeping their eye on the ball,

The markets themselves are in sort of a show-me kind of a mood. They're saying with respect to earnings, we'll believe it when we see it.

The market is showing the classic signs of the beginning of a cycle, a new bull market.

The main focus today is the Fed. After the decision, investors will once again focus on the fundamentals of the U.S. economy and on company earnings.

The market is now factoring in that first-quarter earnings will likely be below consensus. And the reality is that economic growth is probably going to be between 3.5 percent and 4 percent, which is good but maybe not as strong as what some people were hoping for.