What: Can the rally in stocks continue?
Where: Bloomberg TV
When: November 22, 2006
Who: Bloomberg Host, Darin Richards (AKT Wealth Advisors)

Bloomberg Host: Can the rally in stocks continue? Darin Richards thinks so. It’s not necessarily due to a busy pace of mergers and acquisitions or stellar earnings. The optimistic Mr. Richards is Chief Investment Officer of Wealth Advisors. He joins us with his views from Portland, Oregon. Thank you very for joining us today sir. What did you make of trade--[a/v interruption]--we come back for…well abbreviated trading Friday and then into next week.

Darin Richards: Yeah I think the market wants to keep pushing higher, and really unless we see something earth-shattering, I’m going to continue to expect it to go up over the next few weeks and very well into the early part of 2007. We’ve had such positive momentum and I think there’s a lot of new money coming into the market and you look at like the volatility indicator (the VICS) and it’s at a very low level. And you also look at what asset classes are doing well. Riskier ones emerging--[a/v interruption]

Bloomberg Host: --is coming in, and that money’ll be in, and then we fall?

Darin Richards: I wouldn’t say scared, but I think it’s definitely something you’ve got to be prepared to face in the near future. As you see equity valuations kind of get out of wack, possibly. You definitely want to start trimming some of your exposure. So we’re keeping an eye on it. Now if the market gets overheated, we’ll be rebalancing, and possibly even trimming some of our equity positions.

Bloomberg Host: We saw tech, big move today, Dell. Does that have a future or is that a one-off reaction to the Dell earnings?

Darin Richards: Well I think tech, in general, is poised to maybe have a pretty solid year in 2007. Particularly if earnings overall in the S&P companies slow down--get to 10% or lower, you’re going to see some of the areas in the market that tend to be able to grow earnings, even if the economyslows and technology’s definitely one of those areas. So we’re keeping an eye on it and it wouldn’t surprise me if you see growth stocks start to outperform value stocks in 2007. Primarily driven by technology.

Bloomberg Host: Got about 30 seconds left. You mentioned the low volume of trading today influenced the way we ended up. Short session Friday, what happens?

Darin Richards: I don’t think there’s going to be a lot of activity Friday. I think most people are going to be away from the markets, and Monday we’re going to hit the ground running and the market will continue to go up again.

Bloomberg Host: Alright. Thank you very much. Darin Richards, he’s Chief Investment Officer of Wealth Advisors.

Darin Richards: My pleasure.

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