Market Not Ahead of Itself on All Measures
Gregg Wolper: Hello, I'm Gregg Wolper, mutual fund analyst with Morningstar.
We are fortunate to have with us today in our Chicago office two of the managers of Oak Value Fund here from North Carolina--David Carr and Larry Coats.
I just wanted to ask you a few questions to start off about the overall economy. Our readers, our viewers, are very interested to know if the economy has improved as much in the past six months as the stock market makes it seem like it has.
David Carr: Gregg, that's a great question. From our point of view, the economy is still difficult in a lot of areas, but the stock prices got so cheap in the last six months that the move up in stock prices I think makes a lot of sense in that context.
Given the unemployment levels out there, we are concerned that we need some continued new employment to really get the U.S. moving. We're seeing good signs internationally of growth, so there's value still to be found out there.
Larry Coats: One of the things that's interesting, Gregg, is in answering that question, we have to take into context not only the last six months, but honestly over the last couple of years. You have to actually take the position that perhaps valuations became too extreme on the negative side.
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