"Market Monitor" -Robert Morrow, Editor of the Institutional Advisory Service
Friday, September 18, 2009PAUL KANGAS: My guest "Market Monitor" this week is Robert Morrow, editor of the Institutional Advisory Service and publisher of the monthly market letter, the "High Tech Growth Forecaster." And Bob, welcome back to NIGHTLY BUSINESS REPORT.
ROBERT MORROW, EDITOR, INSTITUTIONAL ADVISORY SERVICE: Good to be back, Paul.
KANGAS: Given the fact that U.S. stocks have been advancing for six months now, do you believe the bull market still has legs?
MORROW: Absolutely. I think a new bull market started March 8 this year at a S&P of around 676. At that time, my institutional advisory said that we would go to 1150 in the October-November time frame this year. This will be a minor peak and an ongoing bull market.
KANGAS: How long will it last overall?
MORROW: This bull market will probably last two, three years, say several years. There will be two more minor peaks with measurable declines, so it will be a daunting market.
KANGAS: Will the Dow and the other major indices hit record highs do you think?
MORROW: I think they probably will. I mainly focus on the S&P 500 because of the broad base.
KANGAS: What sectors do you believe are poised to make the greatest gains?
MORROW: I think that the sectors that are most favorable are technology, then materials, energy, consumer discretion and I think those will be the major ones.
KANGAS: And technology is your expertise area, anyway.
MORROW: I have a strong background. I have 37 patents in technology, now 38.
KANGAS: I guess you know what you're talking about. Now on your last visit with us in mid-July of last year, not too long ago, you made a bullish call which was followed by the financial crisis and big losses in the market which, unfortunately, included your "buy" recommendations. Let's have a quick look and see how they've done since then. It won't be a pretty picture. The financial sector ETFs (XLF) and Technology Select (XLK) both down but not bad on tech. Are you still with these?
MORROW: With the techs particularly.
KANGAS: OK, all right. And then Broadcom (BRCM) and Intel, Broadcom actually up 4.1 percent. That's a triumph. Do you stay with it?
MORROW: Yes.
KANGAS: And Intel, you like Intel (INTC).
MORROW: I think it is.
KANGAS: OK and then National Semiconductor (NSM) down badly, 32 percent, Proshares Ultra (SSO) off nearly 41 percent. Are you still with those?
MORROW: I think they'll make recoveries in this bull market.
KANGAS: They're on the mend now.
MORROW: Right.
KANGAS: Do you have some new recommendations?
MORROW: Right, I do. The first recommendation is the technology sector.
KANGAS: XLK which you've liked for a long time.
MORROW: Right. It consists of 85 stocks so you get a very broad exposure to technology.
KANGAS: OK.
MORROW: The second one is BMC Software. It is a major international software vendor. I like it.
KANGAS: BMC, the symbol, as you might imagine.
MORROW: The next one will be Advanced Micro Devices, AMD. They're a global semiconductor manufacturer and I think they're very important in the semiconductor area.
KANGAS: You know all about technology so all your picks so far are tech stocks. How about another one?
MORROW: Apple would be one AAPL.
KANGAS: Everybody likes Apple! You like its price.
MORROW: They like it and for good reason. It's still predominant in personal computers, music devices, cell phones.
KANGAS: Right. And those that you recommended previously last July of 2008, you are staying with all six of them, is that right?
MORROW: Yeah, I think they'll make recoveries.
KANGAS: They're on the mend now, but they're still well down from where they were in July.
MORROW: It will take a while but this is a bull market with some legs.
KANGAS: What are main reasons why you're so bullish?
MORROW: My method is technology, a technical approach. I've forecast somewhat like cycles with some more sophisticate approach using my background in vibration analysis and it's telling me that we're in a new bull market. It started March 8.
KANGAS: Incidentally, d you personally own any of the stocks that were mentioned or have other disclosures to make?
MORROW: I don't because I think it interferes with my objectivity.
KANGAS: That's a good reason not to own them especially for those who follow your advice.
MORROW: Right, exactly.
KANGAS: I want to thank you for sharing your views with us once again.
MORROW: Thank you, Paul.
KANGAS: My guest, Robert Morrow of the Institutional Advisory Service.
