Bull Market Inevitable?
Earlier we mentioned a tweet from Doug Kass where he said that "frankly" the bears might be screwed.
The reason? It was all looking bad for the market a few days ago, but suddenly the bearish momentum has stopped. And if the bearish momentum can't continue in this environment, then there's really no hope for those on the short-side.
In a post up at RealMoney, Kass identifies 4 things that have changed.
- Overall earnings and forward guidance were far better than many of the pessimists expected.
- Apple remains a pivotal stock and an important contributor to aggregate corporate profits, and its blowout results cannot be overstated in consequence and on investor sentiment.
- The general concerns regarding domestic economic weakness might have been overstated -- my baseline expectation of a muddle-through 2% real GDP trajectory still seems likely.
- Lower market prices began to discount the known economic and market headwinds and threats.