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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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From: jimmg2/1/2007 3:15:55 PM
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If you're short this market, you should all seriously consider covering. This market can run a lot higher.

Fresh break-out highs, near record short interest, strong corporate revenues and profits, huge stock buybacks, declining share float, $11 trillion on the sidelines, individual investor has been selling the entire rally.

Business conditions are much stronger than most think. It's hard to find a company that isn't reporting 12%+ revenue growth and 20%+ profit growth. Most companies are generating way more cash than they have uses for and are buying back stock at any price.

I don't see the stock market at bubble valuations. I see robust business conditions, strong credit/money growth, a skeptical public and huge short interest. These conditions are very inhospitable for the bears.
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