Friday, September 7, 2012

The Bears Are Giving Up And Buying Stocks!


The $1.9 trillion restored to U.S. equity prices in 2012 has pushed the Standard & Poor’s 500 Index within 10 percent of a record, more than 7 percentage points closer than any country among the world’s biggest stock markets, Bloomberg told us.

The benchmark gauge for American equities climbed 2 percent to 1,432.12 yesterday as the European Central Bank detailed its bond-buying plan and data boosted optimism in the labor market. More gains are likely as bearish investors give up and start buying, according to Laszlo Birinyi, president of Birinyi Associates Inc. in Westport, Connecticut.

“They realize it isn’t working,” Birinyi, an equity trader for Salomon Brothers Inc. in the 1980s, said in a telephone interview. “The excuses of no volume and earnings aren’t going to be good -- that’s not happening, and maybe it’s time to join the party.....”

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