Mish, don't get too negative, the beginning of April is one of the biggest period of retirement funds deployment, not just the 401K, but also all the individual SEP-IRA accounts. Furthermore, the earnings estimates for April have been lowered so much that we will get many "upside" surprises (of course, upside from drastically lowered estimates). The two elements should, IMTO, power a strong spring rally, and it may start in anticipation before April 1st. The liquidity ammunition is there, Wall Street just need to persuade some of the investors to let go of their 1.4% returns in money market funds (some $2.4 Trillions?) for the siren song of, supposedly higher market returns. Of course, once they distribute to them all those shares, they'll try and buy them back from them on the cheap late in June. Another major impetus for the Street to create a rally from thin air, is the IPO standing by ready to be launched. You cannot launch an IPO in a declining market, you got to have these speculative fervors back, and the street will make sure the right "reasons" are there.
Zeev |
