Global Stocks $1 Trillion Loss No Reason to Sell for U.S. Funds

April 28 (Bloomberg) -- The largest equity-market decline since February is failing to spur selling by the biggest U.S. money managers, who say losses will prove temporary as gains in earnings make stocks too cheap to pass up.

Greece and Portugal’s credit downgrades yesterday are no reason to doubt forecasts for profit growth exceeding 50 percent at Standard & Poor’s 500 Index companies through 2011, said Kenneth Fisher, who oversees about $39 billion as chairman of Fisher Investments. Almost $1 trillion of global equity value was erased on concern rising public debt will spur defaults, derailing the global economy, data compiled by Bloomberg show.

“It’s a little bit like yelling fire in a movie theater -- it doesn’t mean the place is going to burn down,” said Fisher, who favors mining companies, computer makers and retailers, in an interview from Woodside, California. “The quality of earnings is exceptional. Earnings are coming in overwhelmingly above expectations. I don’t see any signs that will stop.”

While the global rally restored more than $21 trillion to equity markets since March 2009, investors are growing more skittish about the Euro region, which combined makes up the world’s second-largest economy behind the U.S. The Euro Stoxx 50 Index has fallen 4.3 percent this year on concern about growing deficits across the region. The MSCI Asia-Pacific Index gained 4 percent in 2010 and the S&P 500 increased 6.2 percent, according to data compiled by

http://www.bloomberg.com/apps/news?pid=20601087&sid=aiJYV2b24sMw&pos=5

 

Buy the dip baby. The Ken Fisher's and Bill Miller's of the world rule ... for now.

 

How much are the World stock markets worth?. Are they worth $50 Trillion to $60 Trillion?.

 

1) Optimism reigns supreme at market tops.
2) Asset inflation is God!
3) Pay no attention to that "small" iceberg over there. :eek: