Is this a bull market “Climbing a Wall of Worry”?
+ Big banks are getting recapitalized. Example: Bank of America’s earnings explode.
+ Big tech companies start rehiring – Intel plans to add 2,000 and Cisco, an additional 2 – 3,000
+ Consensus Estimate S&P500: 2010 is $80, target of 1,200; 2011 is $90, target of 1,350
+ Sentiment is wildly bullish now at 51.1%
+ Fed Chairman, Ben Bernanke, could not have been more cautious in his economic outlook this week especially because “44% of the unemployed have been without a job for six months or more”.
Goldman Sachs charged with fraud by SEC
+ In addition, Goldman vice-president, Fabrice Tourre, who was principally responsible for creating and selecting the CDO packages, has been charged.
+ SEC has filed a civil suit arguing that Goldman played a major role in picking the mortgage-back securities to be put in the portfolios and when the market softened, knowingly shorted these same securities for their own benefit.
+ SEC argues “Many investors were not aware of how disadvantaged they were by these CDO structures”.
For more information on Step 9 – “In the red zone” Governments Force Turnover, click here