Here’s the deal: You never know for sure when a buying opportunity is staring you in the face.
In August I called S&P 1,100 an “extreme value area” and said that investors with a 3-year horizon should be buying with both hands any time we got near there.
In October I said “buy any dips toward 1,150” because Europe was going to do enough stop the bleeding. In my analysis, the market was “waiting to go higher” as soon as catastrophe was off the table.
Now, we look at strong US data and confidence vs. how bad Europe’s recession could be in 2012 and major strategists are coming out on the bull side. This morning, I listened to David Kelly of JP Morgan, Gary Thayer at Wells Fargo, and Mark Mobius who are all positive on the economy and overweight equities.
There are still risks and potential shocks. Think Deepwater Horizon and the horrible Japanese earthquake.
But, on fundamentals and Europe stabilizing, will we look back in the second quarter of 2012 and say “1,250 was a buy!” I think so.
Cooker
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