InvestBaboo

Stock Rally Built on Fundamental Sand

Dear Author:

You are in denial.

The rally is happening because investors have concluded that we are not looking at Great Depression 2.0. Based on several leading indicators investors have also concluded that recovery is under way. Therefore, it is wrong to value S&P earings below $50 and stocks were being valued as if they were.

It is really that simple. Dow has the power now to scream past 8000 and after that investors need more clarity on the earnings picture for any further upward move.

Rallies: The Million Dollar Question

I think this is one of the most important articles to be published in Seeking Alpha in recent weeks. However, many will miss its significance because the traumatic past few months have solidified the opinions and biases that many possess with regards to the market, economy and world affairs. In a nutshell what the author has said boils down to this. "THE TREND IS YOUR FREIND TILL THE BEND AT THE END!" The trend now has decidedly turned positive.

Right now there are daily and weekly buy signals on a wide spectrum of companies in a wide spectrum of industries. You have been presented with the greatest buying opportunity of a lifetime to buy namebrand global American behemoths at firesale prices. It is sort of like going into a department store and finding prices on luxury items marked down accidentally to single digits. I happen to believe that America got the world into this mess but will lead the world out of this mess. Buy now and you will be happy camper 5-10 years down the road.