>>> SPX 1,500 Target Within 2-3 Years<<<
I reiterate my S&P 500 1,500 target within 2-3 years.
Also added an archive page all iamned.com posts
Some of My Recent Blunders
Despite being extremely wise, admittedly, not all of my recommendations or predictions have come to fruition.
S&P 500 is still a long way from my target of 980, which should have already been attained had it not been for a combination of bad retail sales numbers, a dismal fed economic forecast, and profit taking.
The DJIA should be at 12,000 because stocks are still very cheap and the US economy is fundamentally strong. People keep talking about deep recession, but I can’t see it.
In mid April I predicted Google would break out to $440 on a strong earnings report; it still trades below $400.
The white candle failed. Instead of the rally resuming stocks slumped for the remainder of the week.
Stocks unexpectedly dived in the last hour of trading yesterday, erasing the gains made in the futures that morning.
Party Like it’s 2007
Yesterday’s end of day surge was a prelude to a rally today, as I predicted it would be. Futures are yet again on fire. This is one of those ‘go all in’ opportunities. When you have this much strength early on it’s gonna carry over well into the normal trading day.
The 2002-2007 trade is alive and well. The commodities and Euro boom which began in 2002 is far from over despite the fake financial crisis. The economies of India, China, Brazil, and Russia are still booming, hence the uninterrupted demand for oil, coal, grains, and fertilizer.
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Geithner: Stimulus and Bailouts Are Working
According to Geithner, the bailouts and stimulus are bringing “immediate stability”. I believe him. They are working, as evidenced by the abrupt rebound in consumer spending and massive stock market rally. On a related note, Bloomberg reported that the $500 million dollar China stimulus will “help the government achieve its growth target this year”. Wall Street likes bailouts and stimulus and short sellers despite them, because they are effective in restoring investor and business confidence.
Yet the Ron Paul supporters and the radical left refuse to accept this fact, and are still waiting for that next shoe to drop. They’ll be insolvent before that happens. Taxpayers need to learn to stop complaining about bailing out failing financial institutions, and instead keep maxing out their credit cards so that the stock market goes up.
Geithner also alluded to reform, but don’t get your hopes up. He’s savvy enough to know Wall Street thrives off risk and deregulation, and with the stock market and economy recovering he’s not going to mess it up by appeasing the ‘gold standard’ loonies.
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A Day of Disappointment for Shorts
Closing update.
I was wrong. Yes, the big white candle failed, but today was a bigger disappointment for short sellers than bulls, despite a lower close. For one, stocks ended near their high, and second the magnitude of the selloff was insubstantial. Considering the S&P 500 is up 33% from its March lows, a 1.4% retracement is kinda a joke.
The pain will continue on Friday. No one who shorted today made money because of the end of day surge.
Job loss isn’t a big deal, which is why the sell off was subdued. The new baseline of unemployment will rise from 4.5% to 7-8% by 2020 due to improvements in efficiency, but the GDP growth will return to levels last seen in the 90’s. Investors who short the market based on supposed ‘gloomy’ job data will suffer large losses because economics isn’t a rational science. If you invest using your heart and not your brain, you will fail.
Easy fed policy, laissez faire capitalism and the ‘Goldilocks economy‘ is the driving force of this unrelenting bull market. Job security, welfare FDR type liberalism, employee benefits, affordable quality heath care & education, frugality, high employment, unions, and isolationism/protectionism are relics of a bygone era. They are never coming back.
That’s why you BUY & HOLD the same stocks I have been recommending on iamned like GOOG, AAPL, MA, V, BIDU, RIMM, POT, MOS, EWZ, FXI, GS, and BIDU.