- Tight Money: "That is when the Federal Reserve pulls in their horns, takes away the punch bowl, restricts the growth of the money supply. And money is harder to get, and as a result money price of money goes up....Do we have that now? No. Do we have the prospect of having that now? No."
- Rising Interest Rates: "I'm not talking about the federal funds rate going from 1 to 2. I'm talking about a meaningful rise in interest rates.....When we look at the rates today, they are low, low, low. Rising rates are not a problem as we look at the market place right now.......
- Hyperinflation, rising inflation. Do we have that? No... We don't have an inflation problem right now.
- Rapid Economic Growth. Do we have that? Not on your life. Not even close......Some people are worried about a double dip.
- Over-valuation: "When stock prices are so high relative to valuations they're on the moon like they were in January of 2000. Well, not true. We don't have over-valuation right now. We have good valuation right now."
"So all five of those are no's. We don't have tight money. We don't have rising rates problems. We don't have rising inflation problems. We don't have rapid growth in the economy and we certainly don't have over-valuation in the stock market......Out of five possible root causes of a bear market, we have zero. That is why I am of the opinion that we are not in a bear market."
From Honey's Bob Brinker Beehive Buzz June 27, 2010, Bob Brinker's Moneytalk: Summary, Excerpts and Commentary
"....So from my point of view, I think it's a correction. I don't think we are going into a bear market, defined as a decline of more than 20% of the S&P 500 Index. And I also believe that when the correction is over, we are going to see new recovery highs in the S&P 500 Index. That's what I think. I'm Bob Brinker."
.....Remember we had a correction in January and February. It lasted three weeks and it was 8.1% in the S&P 500. A lot of people saw that correction and said the world is coming to an end, run for the hills. They were wrong. Now we've seen an 8.7% correction to date that has been in process for the last couple of weeks since late April which has been against the backdrop of what's been happening in Greece and in Europe, and we getting those same screams from these people who are panicking and saying run for the hills, it's all over. Well, that's their opinion, that is not my opinion.....
.....I do not believe that the crisis in Greece is going to derail the United States economic recovery. And as a consequence of that belief, I do not believe that the crisis in Greece is going to produce a bear market in the United States. Bear markets are defined as losses in the major indexes, such as the S&P 500, in excess of 20% on a closing basis."
......You know, just a couple of weeks ago in my investment letter, this is what I wrote, quote: "Any short-term weakness is viewed as a health-restoring event." I also went on to write earlier this month that I would take a more positive view with regard to investing new money into the market during a correction for those who find themselves under-invested. And I do believe that those who are looking for opportunities to make additions to their stock market portfolios and are using this correction and periods of weakness within this correction -- there have been plenty of those. I think that's a reasonable course of action....
....So from my point of view, I think it's a correction. I don't think we are going into a bear market, defined as a decline of more than 20% of the S&P 500 Index. And I also believe that when the correction is over, we are going to see new recovery highs in the S&P 500 Index. That's what I think. I'm Bob Brinker. This is America's money program."