Forecaster James Finucane calls a “V” bottom in the US market. His logic:
- Bear Stearns crescendo just like panicked bailouts of 1970, 1984, 1987, 1998, etc.
- Everyone’s bearish.
- Alan “I’ll say anything to save my reputation” Greenspan saying “worst financial crisis in my lifetime.”
- 9 straight months of equity mutual fund outflows (a record)
- Consumer confidence at lows
- Individual investor bearishness at highs
- Central banks in complete panic, will do anything to save growth, esp. in election year
Finucane’s guess is probably as good as anyone’s. We’re significantly more cautious, but hopefully we’re wrong. More at Barron’s…