Here are comments from stock market Professionals who are very good, and not always bullish to raise money, but Professionals who trade both ways and don’t care what the direction of the market is.
Hedge fund guru Barton Biggs, managing partner at Traxis Partners, predicted a surge in equities in 2011 on Tuesday, Jan 11th. Biggs gained notoriety in 2001 for stating that “hedge fund mania” was fueling a speculative bubble which would eventually go pop. Now investors listen to him.
Jan 31 2011, – Jim O’Neill, the chairman of Goldman Sachs Asset Management and the man who coined the term BRICs, says this is “the year of the U.S. comeback.” Meanwhile, Bob Doll, (same link as Jim O’Neill above) chief equity strategist for fundamental equities at BlackRock, says we should expect “a nice surprise” from U.S. equities. Is it time to put your inner bear back in its cage and make a big bet on U.S stocks?
LOTM: In watching too much Bloomberg TV and CNBC, one theme I’m picking up is there’s a lot of cash on the sidelines that wants to get in this market, and is hoping for a deeper correction to get that money to work. Usually that means the correction does’nt go too deep. Smaller companies should do well, and perhaps extraordinary, but one might want to accumulate the biggies like Intel (INTC), General Electric (GE) and Microsoft (MSFT) that have been flat for the last decade.
A more conservative and passive approach would be to buy market indexes/ETFs NASDAQ 100 (QQQQ) or the S&P 500 (SPY). Our heart is with individual companies rather than indexed funds, but ETF’s are great for certain goals. The main goal for owning an index fund is being a broad and diversified way to catch a big trend. The S&P 500 is at 1286.5 – Birinyi is projecting (in the link above) a move in the S&P 500 to the 2500 area by 2013 time period.