So much for the howls, profanities, and audible gasps heard on trading floors all around the world last week. The 15 minute crash is already slipping down the memory hole.
Thanks to the trillion dollar European bailout, the proverbial can has been kicked even further down the road.
That has bulls like Barton Biggs active in the market—buying stocks instead of selling them.
From Bloomberg by Shani Raja and Susan Li entitled: Biggs Says U.S. Stocks May Rise 20% as Crisis Eases
“U.S. stocks could jump as much as 20 percent, led by technology companies, as the global economy rebounds from Europe’s debt crisis, said Barton Biggs.
“I’m betting the next move in the U.S. market is going to be up 15 to 20 percent,” Biggs, who runs New York-based hedge fund Traxis Partners LP and whose flagship fund returned three times the industry average last year, said in a Bloomberg Television interview. “I would just point out that the world is having a strong economic recovery, and so is Europe.”
Biggs recommended buying U.S. stocks last year when benchmark indexes sank to the lowest levels since the 1990s.
The stock gauge climbed 4.4 percent yesterday, the most in more than a year, after European policy makers announced an almost $1 trillion loan package to contain the region’s sovereign-debt crisis. The S&P 500’s advance followed an 8.7 percent slide since April 23 — and the biggest weekly retreat since the start of the bull market in March 2009 — on concern Europe’s leaders weren’t doing enough to avert the threat to global credit markets.
“There are plenty of opportunities in the U.S.,” Biggs said, adding that shares in drug developers look cheap and that property companies are also attractive. “It’s by no means a foregone conclusion that we have a crisis every three years and, my God, that the world is coming to an end. I don’t believe that’s what’s happening at all.”
Not yet anyway…..
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