Dow Could Hit 11,500, But Downside Risk Greater

CBSNews.com

A veteran market watcher who correctly called the bear in 2008 and the recovery in 2009 says the current state of Wall Street is much less clear.

Today's market is "neutral to positive" but overvalued on a fundamental basis, says Richard Suttmeier, chief market strategist at Niagara International Capital and ValueEngine.com, in an interview on Yahoo's Tech Ticker financial news web site.

A year ago this week, the stock market began a historic rally from the depths of the worst bear market since the Great Depression. Technically, there was a "perfect storm for a bottom" in March 2009, says Suttmeier, one the few market watchers who were correctly bearish in 2008 and called the turn in 2009.

Today, Suttmeier says the outlook is far-less clear. Technically, the market is "neutral to positive" but overvalued on a fundamental basis, he told Tech Ticker. The veteran market watcher believes short-term momentum could take the Dow as high as 11,500 in the near term and is long tech names such as Cisco, Intel and Adobe Systems.

But the market's "downside risk is a lot more than that upside potential," Suttmeier says, advising investors to "take money off the table" into additional strength.

Read the full interview

[tsigili]

The best thing that could happen in the market, is that it becomes relatively stable, and far less volatile. While that may not please the profit takers.....it is way better for the country as a whole.

[spaceatoms]

In the 20's the elders knew they were wrong and crashed the entire fiasco, Wall Street is truly not about supply and demand, its about greed and politics. There was absolutely no reason that AIG should have got a bailout!

[ludvig1-2009]

Let's see he says possible to go to 11,500 and could go negative. I bet he called it correctly again.

[ajvw]

"Dow Could Hit 11,500, But Downside Risk Greater"

I predict that one year from now the dow will close some where between 0 and 20,000. That statement is as pointless as this whole article. cBS

[johnny465]

hahahaha great comment you must be one of them experts on wall street