Replies to post #98096 on Biotech Values

[gym gravity]

Our gov't wants to stimulate more, Obama was one of the only one's at the G20 that was pushing for stimulus... he was beat back into a corner as everyone else thinks austerity measures are the answer. Ask Ireland how austerity is working for them. I think Bernanke is of the stimulus mindset and no matter how Obama hung his head after G20 stimulus will continue and moderate inflation is in the cards.... so yes... stock market can keep going up from here and tap new highs.

hope for stimulus, bet on inflation.

Ireland:

http://www.nytimes.com/2010/06/29/business/global/29austerity.html?hp

Rest of world:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51842677&txt2find=austerity

[ilpapa]

Don't you mean secular bear markets last a long time?

[DewDiligence]

This rally from the 2009 lows looks more like a bear market rally brought on by Gov stimulus. The Gov cannot afford another round of stimulus.

That’s an unduly myopic view of the world, IMO. Did you realize that close to half of the aggregate sales of S&P 500 companies comes from outside the US? (Among the companies I follow, this proportion is even more than half.)

I didn't track articles in Nov - Dec of 2008, I am sure there were a lot of calls that was the bottom.

There are always some people calling a bottom, but articles like the one I posted in #msg-51844154 were much more numerous in Mar 2009 than at other times. These articles were not merely bearish—they advocated that ordinary people should not own stocks at all because, heck, they are just too risky.

The page-one story from today’s Boston Globe is the first article like that I’ve seen in a while. I consider it a pretty good contrary indicator.

[DewDiligence]

Can we have a 3% rally in July, no doubt, we are close to oversold. Is it going to last long, I don't think it will… bear markets last a long time, and the usually test the bottoms at some point in time. This rally from the 2009 lows looks more like a bear market rally brought on by Gov stimulus.

The S&P 500 is up 20% since you posted the above in June. If you were managing other people’s money for a living, you’d probably be out of a job by now.