By: Bill Simpson in Slidell, LA.

Bill Simpson in Slidell, LA. — Tue, 13 Jul 2010 19:41:44 +0000

Unless some big war starts and disrupts the oil flow, the USA stock market will be up at least 10% between now and the end of this year. The investor class is in less of a fear mode, now that they see that Europe won’t collapse. As long as the big companies are making money, they don’t care about US unemployment, unless it begins to threaten US social stability, which won’t happen with food stamps, welfare, and earned income tax credits for the unemployed and underemployed.
The new stock market is based mostly on a herd instinct, so the rally will last until a pride of lions appear. It is Las Vegas East. With programmed electronic computed trading, the era of long term value investing is over, for all but a few stocks. Watch how fast the DOW gets back over where it was before the European debt panic. Tomorrow it will turn positive for the year. My year end DOW target is 11,900.
I am assuming that the Europeans are smart enough to bail out their bad banks, which I think they are, after witnessing what happened with Lehman.

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By: Bill Simpson in Slidell, LA.