That was the original title for today’s column but they changed it so it would not be like
Here Comes the Bride. I had Here Comes the Judge a la Laugh-In in mind but even more importantly it was a play on words. No, I have not turned bullish. But since my 875 target was blown out I have stepped aside to rethink and figure out the market’s real message here.
It’s not “if” the market will correct but “when” and from how high up. I thought 875 was the place but clearly it was too low.
Before you call me the permabear that blew it, keep in mind I set the 875 target in March the day after the big 6% rally. The S&P was barely above 700.
So JPMorgan does not need more capital. B of A does – but is that the real news? It seems like everyone has jumped on the bandwagon of the return to a healthy financial system already and have forgotten that toxic assets and home inventories are still problems.
History tells us that bear markets do not turn on a dime. Is it different this time? It is never different. People will get overly enthused too early and get slammed as the first correction sets in. Then we can finally see the decks cleared – and for the sign of the times – delevered.
Vive la short squeeze!
