Sunday, September 2, 2012

UH-OH: Barron's Latest Cover Looks Bullish



(Note: The covers of widely circulated newspapers and business news publications are famously known for being contrarian indicators of what will actually happen in the economy and financial markets…)

From Barron’s cover story this week: “The stock market has deflected lots of worrisome news this summer, and Wall Street strategists see more gains ahead. Beware the fiscal cliff?

Call the stock market's swift 10% rise since the end of May a Teflon rally of sorts, because myriad worries on Wall Street -- from the so-called fiscal cliff in the U.S. to Europe's financial mess to turmoil in the Mideast -- haven't stuck, much less slowed the bull's progress. Instead, stocks have marched gamely higher, as ultra-low interest rates have burnished risk assets' attraction and propelled investors to seek higher returns.

The market's spirited advance not only has delighted investors, but vindicated the mostly bullish 2012 forecasts of 10 prominent market strategists Barron's surveyed last December…..

Read the rest at http://online.barrons.com/article/SB50001424053111903904904577615373858091172.html

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