Smith Faculty Opinion Article

April 2008

By Dr. John A. Haslem, Professor Emeritus
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 Haslem

The 30 Seconds Outlook
April 1, 2008

"Berkshire buys when the lemmings are headed the other way."
Warren Buffett.

The undercurrent in the stock market suggests that the economic outlook has improved. The Fed's belated actions in providing relief to the credit markets and financial institutions appears to have set the stage for a return to something like normal. Future losses should become progressively smaller, which will reduce the level of fear currently priced into the stock market. If this be the case, the Fed's actions should mark the low point in the market and investors, especially deep value investors, will increasingly sample from the bountiful bargains.

by John A. Haslem

John A. Haslem, Professor Emeritus of Finance, University of Maryland.