With so much pessimism going on the trading floors, it seems highly plausible that stocks are oversold. Even so, there was a good bounce today. And it is now a bet whether this uptrend will continue on or whether we will face a long correction.
Here’s a few reasons as to why I think the market should continue its bull run..
-Exponential growth in Asia (these rich nations will require more commodities and they may change to higher spenders)
-Improving job outlook in the US
-Stabilizing EURO
-It is not summer yet, and this is time for a bull run
-Economic prospects are bright everywhere. Iron ore pricing is going up instead of down as previously projected. Copper is at an all time high. Demand for commodities are at elevated levels not seen before
-Oil price is stabilizing at $100. This is not only due to Libya, but also due to inflationary pressure.
All in all, US equities look set to grow. S&P might touch new highs this year to 1500.
I am very bullish in this market now. Again my favorite sectors are Auto, Steel, Energy, Retail, Industrials.
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