We’ve got people in some of the worst hit parts of the US buying homes, ArcelorMittal selling the largest corporate convertible bond that we’ve seen this year, and tons of M&A action (witness the Suncor/PetroCan bid yesterday). We’ve already heard from the banks three weeks ago that they said they were again making money (yield curve lending is working). And all levels of the government stated that they will do whatever is necessary to prevent deflation. The US government just became the world’s largest hedge fund (and their bias is long).What does all this mean? It means that this probably isn’t just a garden-variety bear market rally, but it could be the start of a new bull market. That’s right. It appears that the bear market is over.
Shiller, Roubini and Whitney bears don’t look so smart anymore. They look just as foolish as the idiot bulls who were calling for DOW 20,0000 at the top of the market in 2007. Cheerleaders and Coffin-humpers only make you money when the market moves in one direction.
Since my "Rocky" post, we’ve seen the market up a huge amount and I think it has plenty of room to move some more. I think we will see mutual fund and pension buyers moving in soon (if they haven’t already). The bear shitters are going to keep placing the same bet over and over again. Short stock, stock moves higher, they cover. Finally, they will capitulate and just move into cash, until they can’t take missing out on the rally. Then they will finally go long.
The more people talk about things being different this time, the more it stays the same.
Folks, this is Johnny Newsmaker signing off. We now return you to your regularly scheduled programming… "Dead Ass-raping Clown Found on Wall Street! More at 11." only on Ranting-TV…
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