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.