Stocks were weak midday Wednesday<http://finance.yahoo.com/news/US-stock-futures-little-apf-543236188.html?x=0&sec=topStories&pos=main&asset=&ccode=>, which may be the beginning of a correction some say is long overdue, given the S&P 500 entered the session up more than 50% from its March lows<http://finance.yahoo.com/news/US-stock-futures-little-apf-543236188.html?x=0&sec=topStories&pos=main&asset=&ccode=>.
But don't confuse a near-term setback with the end of the rally, says Mark Dow, fund manager at Pharo Management, a global macro hedge fund with about $2 billion of assets. Dow believes the market can "continue to grind higher for a while" for a number of reasons: - *Performance anxiety:* Market psychology moves in three phases Dow says, denial, migration and capitulation. After having "denied" the rally in its early phase, many institutional investors are now "migrating" back into stocks, he says, mainly out of fear of missing more upside. "They're buying not because they want to but because they have to," he says. In other words, big money is only just starting to come off the sidelines. - *Upside surprise:* While not a believer in the V-shaped recovery story, the former IMF and Treasury staff economist believes the market still has a "bearish bias" when it comes to the economy, which he thinks will prove better than consensus. - *Weak Dollar:* In case you haven't noticed, the dollar has fallen as stocks, emerging markets and commodities have rallied. Dow believes this trend will continue and doesn't believe a weak dollar is a sign of impending doom (as we'll discuss further in an upcoming segment). http://finance.yahoo.com/tech-ticker/article/295987/The-Case-for-More-Upside-Performance-Anxiety-and-Surprising-Growth?tickers=%5EDJI,%5EGSPC,SPY,DIA,UDN,EEM,QQQQ&sec=topStories&pos=9&asset=&ccode = -- *"The Future Of India" by Swami Vivekananda.* http://www.youtube.com/watch?v=cfSWa9bH1kY&feature=related *“How much of a role does luck play in trading? In the long run, zero. Absolutely zero. I don’t think anybody winds up make money in this business because they started out lucky.”* *Richard Dennis * --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
