Maybe this should be in Birchtree's Account Talk?:laugh:
Biggest Rally in 76 Years Not Dead Yet as Seers See Gains Ahead
By Rita Nazareth and Whitney Kisling
March 11 (Bloomberg) --
Laszlo Birinyi will never forget the moment a year ago when the last ounce of confidence disappeared. Everyone from billionaire
Warren Buffett to New York University Professor Nouriel Roubini was convinced that the economy was in a free-fall, that exploding deficits would devastate the dollar and that home
prices were heading down as much as 20 percent.
“At turning points, the mood is always in one direction,” says the 66-year-old Birinyi, who characterized the “total conviction” of pessimists as the start of an advance that would end up making
Barack Obama’s first year in office the best for shareholders in 76 years. What’s more, the
Standard & Poor’s 500 Index, which gained 69 percent in the past 12 months, is nowhere near its peak in a rally that may persist through the next presidential election, he says.
Taking advice from Birinyi,
Barton Biggs of Traxis Partners LP and Leuthold Group LLC’s
Steve Leuthold would have turned $1,000 invested in the S&P 500 into about $1,690 by the one-year anniversary of the bottom this week. All of them remain bulls, saying stocks will advance as the economy gains momentum and the fastest earnings growth since 1994 lures Americans from bonds.
More than $8 trillion in U.S. government stimulus stabilized the financial system and restored
$5.95 trillion to equities since March 9, 2009. Shares jumped as the Federal Reserve kept its
target rate for overnight loans between banks near zero and worker productivity climbed at the fastest rate in seven years. Inflation remains contained, with consumer prices excluding food and energy costs holding below 2 percent for more than a year. Home prices increased seven straight months through December, according to S&P/Case-Shiller. [more]
http://www.bloomberg.com/apps/news?pid=20603037&sid=a8hMbBYSrcCE
Moral of the story - always wait for the final analysis before partying.
