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Sun, Oct 19, 2008 - Page 10 News List

NYSE: Wall Street cautious on market rebound

BOTTOMING PATTERNSome analysts believe that the stock market has not fully priced in the possibility of a prolonged US economic downturn or global recession


David Kastner, analyst at Charles Schwab & Co, said stocks appear cheap after the brutal selloffs, even taking into account a sharp slowdown in the economy and profits.

“The market appears to have priced in a fairly deep recession,” Kastner said.

Warren Buffett meanwhile said he is moving out of bonds and into stocks now even though there could be some more turbulence.

Buffett said he was following his advice to “be fearful when others are greedy and be greedy when others are fearful.”

“If you wait for the robins, spring will be over,” he wrote in the New York Times.

Bonds fell as investors turned to stocks. The yield on the 10-year Treasury bond increased to 3.938 percent from 3.861 percent a week earlier, and that on the 30-year bond climbed to 4.312 percent against 4.137 percent.

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