Don't Count on a September Pullback


Q: Do you think we will have the historical September pullback?

A: Great question, and I'm glad you asked. The reason I say that is we're hearing right now that a lot of professionals and individual investors are lightening up in anticipation of a pullback. When everyone thinks something like that will happen, it never does. We right now are more on the side that the market is showing a great amount of resiliency, and the September pullback will probably not happen. If everyone was too optimistic, the odds would favor the pullback. Right now, people are more pessimistic at this juncture in time. Our opinion, however humble it may be, would be: "Hang in there, and expect higher prices."

Q: What's your view of growth stocks in general?

A: Our opinion of growth stocks is that every sector has its day, and you have to look at the time frame that you're in in any economic cycle. For the past three-plus years, growth has been out of favor, and the economy hasn't been growing at the prodigious gains it had during the late '90s. We've had a breather. Has it been enough? If it has, growth may just come back. We'd like to see that, but it's difficult to say if growth will be the actual leader of the pack.

Investors need to look at the macro picture. And right now, that macro picture is favoring some growth but also some of the income-type issues -- that, of course, being because of the tax package.... We feel that investors need to focus on a balanced portfolio -- some certainly in growth, but some in income.

Q: What are some of your favorite health-care


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