Wednesday, June 17, 2009
If ever there were an opening paragraph of a news report that conflicted sharply with the impression conveyed by the title, it is this item at Reuters that first buoys, then dashes, the hopes of millions of stock investors looking to make back their losses of recent years.As if the words underlined in red weren't enough to spoil the fun - more than three-and-a-half years out into the future and presuming a most unlikely shape for an economic recovery - you get Mr. Lee's less than confidence inspiring mug to completely squash the hopes that were generated as a result of reading the headline.
He is quite bullish for 2009, however, figuring the S&P 500 should go up another 21 percent by year-end to 1,100. Given that the broad U.S. stock market index would have to gain more than 70 percent from current levels to recapture its 2007 high of 1,565, a return to this level in 2012 doesn't sound all that outlandish upon further review.
Unfortunately, the V-shaped recovery still does...