Salient to Investors:

  • Craig Hodges at Hodges Small Cap Fund said any slump in the market will be temporary and a buying opportunity as there is still a lot of money on the sidelines. Hodges is 10 percent in cash, and likes airlines.
  • Greg Taylor at Aurion Capital Mgmt said they are getting their buy tickets ready.
  • Raymond James says equities are vulnerable.
  • Citigroup is concerned about a severe pullback.
  • Douglas Ramsey at Leuthold said they are cutting stock holdings in tactical funds to 60 percent from 65 percent on expectation of a 6 to 8 percent correction this summer before the market resumes later in 2014.
  • Mark Luschini at Janney Montgomery Scott said over the long-term equities are supported by an expanding economy and improving labor market, and there is still too much sideline cash at too many under-invested institutional investors that would quickly put a floor under equities.
  • The S&P 500 is at 18 times earnings, the highest since 2010.
  • The S&P 500 put/call ratio is 2.1, the most since 2008. The VIX call-to-put ratio of 3.7 is the highest since before the financial crisis.
  • The median economists predicts half2 GDP will grow 3.1 percent.

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