The author of Wall Street Meat weighs in on the question of the hour. Unfortunately, he sounds unusually mealy-mouthed (those green shoots have penetrated his brain, apparently).
Here’s the abridged version:
Only a fool predicts the stock market, so here I go. This sure smells to me like a sucker’s rally. That’s because there aren’t sustainable, fundamental reasons for the market’s continued rise. Here are three explanations for the short-term upswing:
– Armageddon is off the table.
– Zero yields.
– Bernanke’s printing press.
The stock market still has big hurdles to clear. You can have a jobless recovery, but you can’t have a profitless recovery. Consider: Earnings are subpar, Treasury’s last auction was a bust because of weak demand, the dollar is suspect, the stimulus is pork, the latest budget projects a $1.84 trillion deficit, the administration is berating investment firms and hedge funds saying “I don’t stand with them,” California is dead broke, health care may be nationalized, cap and trade will bump electric bills by 30% . . . Shall I go on?
Until these issues are resolved, I don’t see the stock market going much higher.
Full comtemplation here >