Here are some bullish insights from an unlikely source – David Rosenberg:
“First, sentiment has come down from recent lofty levels. That is encouraging.
Second, earnings estimates have stopped going down. That is good news.
Third, while the Fed will likely taper off, it will still be providing substantial liquidity to the marketplace.
Fourth, as Kopin Tan explains in Barron’s, pension fund assets exposed to equities has come all the way down to 35%. And 68% of fund managers are behind their benchmarks year-to-date.
Fifth, the economy seems to have endured the most intense part of the federal fiscal tightening phase in the first two quarters of the year.
Now, I wouldn’t say that I’m a bull. That’s going too far. But I am saying that 45% exposure in the asset mix devoted to high-quality stocks is prudent – which is exactly where we are in the aggregate.”
So, there’s that….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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