Why no one is buying stocks

Fewer than 29 percent of brokerage stock ratings are "buys," according to Bloomberg. That's the lowest percentage in at least 13 years. What's weird is that the profit growth estimates among SP 500 companies is the highest in 22 years.

"People are sitting on a fence," said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, which oversees $550 billion. "When I go and talk to our equity analysts, they look at the companies and say, 'Boy these companies look pretty good, earnings are OK, they have plenty of cash. What if there's a double dip?'"

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook