Barton Biggs of Traxis Partners says this is an opportunity to buy stocks. He is still very positive and ultimately says the market should continue to rally. Biggs is applying the rule of 20 which implies the PE ratio of the market should equal short term rates – 20. At $90 in earnings ($100 in 2011) and the Fed on infinite hold I’ll just let the reader do the math on this one….All-time highs in the S&P in the coming years? Barton implies such….
Source: Bloomberg TV