Posted on 09/08/2010 6:04:31 AM PDT by blam
Bank Of America: Near-Miss Recessions Like Now Usually Precede Huge Stock Market Rallies
Vincent Fernando, CFA
Sep. 8, 2010, 5:27 AM
As people such as Nouriel Roubini note that the U.S. economy has hit 'stall speed', whereby any unexpected shock could knock the U.S. into recession, David Bianco at Bank of America Merrill Lynch highlights that fearful times like these tend to precede strong rallies.
David Bianco:
Near-miss recessions tend to cause a powerful market rally
In the prior near-miss recessions of 1967, 1985, 1995, 1998 and the 2003 near- double-dip, the S&P 500 delivered an average return of 15% from the start of September to January-end. Once recession fears subside, we believe the global cyclicals – Energy, Materials, Industrials and Technology -- should rally the most, as they are best positioned to benefit from exceptionally low rates in the US and healthy global growth. They are also the sectors most exposed to healthy US business spending. We reiterate our overweight on Technology, Energy and Materials and equal weight on Industrials.
The economy may be at 'stall speed', but should it dodge a fresh recession, then markets are likely to breathe a large sigh of relief.
(Via Bank of America Merrill Lynch, S&P Sept. Stress Test, David Bianco, 3 September 2010)
[snip]
(Excerpt) Read more at businessinsider.com ...
What about depressions?
The only “sigh of relief” for the markets and the ecomomy will happen after we castrate Obozo and the Dems during the November elections. There can be no recovery until Obozo is out of office or effectively neutered.
Why the free advice?
Shall we say we need to neuter that dog in November. We should keep with the theme he laid out in his Labor Day speech.
The market will go up if it doesn't go down. Thanks for the tip.
lol
wow they are drinking the coolaid this morning !
lol
What a crock!! So the gubmint announces we missed another recession and SUDDENLY everyone runs out and begins wildly spending their money again? Because that’s what it will take to get this economy chugging again.
I for one am fed up with these types of “green shoots” stories portending things are gonna be just fine so don’t you worry.
Works for me. Muzzies have this problem with dogs. And with women.
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