Suddenly a Good Bear Is Hard to Find as Stocks Rise on Fed Ease

Discussion in 'Trading' started by ASusilovic, Sep 24, 2007.

  1. Sept. 24 (Bloomberg) -- The Federal Reserve has driven most stock market bears into hibernation.

    From UBS AG to Deutsche Bank AG and Citigroup Inc., Wall Street strategists are the most bullish they've been since 2000 after the U.S. housing slump erased $5.6 trillion from global equity markets and prompted the Fed to cut interest rates.

    Wells Capital Management and MFS Investment Management, which together oversee $375 billion in assets, are adding or looking to buy shares of banks, retailers, and technology companies on expectations lower borrowing costs and expanding economies across Europe and Asia will spur profit growth.

    ``You couldn't mix a better drink for the stock market,'' said James Paulsen, who helps oversee $175 billion as chief investment strategist at Wells Capital in Minneapolis.

    Investors have been celebrating since the Fed's surprise half-point rate cut Sept. 18 sent the Morgan Stanley Capital International World Index of 23 developed markets on its biggest two-day rally since June 2006. They snapped up shares of commodity producers and industrial companies -- which became cheap last month after global stock prices fell to the least expensive in 12 years and will benefit the most when the economy grows.

    I don´t think the headline is true...still a lot of BEARZ around...:D
  2. [​IMG]
  3. S2007S


    Everyone should know that the bear always makes it to wallstreet. Bull has been running too long, watch the emerging markets, they look extremely toppy.
  4. no ore bear markets ever

    globalization and growth

    revenue and consumerism
  5. (1) Money moves markets, not opinions. (2) When those emerging markets turn into submerging markets, you'll have to be very careful.
  6. I'm still here, not a fairweather bear, just a bear. This mouse-trap of a market was triggered recently, the ball is still in motion at the moment before the hammer finally falls.

  7. Smart bears wait for the bulls to get tired, what with all the chest thumping. They look for the first big yawn or two. Then they introduce themselves. Everyone knows it's not fashionable to be the first arrival at a party.
  8. Agree. If your're going to short be very patient. Dont just jump in.

    So many people lost money shorting July and August.