It’s not about the per cent change from the market’s low, says Biggs. It’s about the per cent change relative to the recent high. So stop worrying about the massive rally in percentage terms from the recent lows.
We’re only half way through this rally, according to Barton Biggs.
“We’ve had an unbelievable decline in both the economy and the stock market. I think we’re going to have a bigger than normal bounce.”
If you look at major market declines historically, for all kinds of assets, the average rally should be up 72% from the lows, thus “We haven’t even had a normal recovery yet… In some instances the rallies were even bigger than that, they were 80-90%.”
Mr. Biggs is focusing on large cap technology, pharmaceuticals, and oil services companies.
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