Thursday, March 05, 2009

Now Is The Time To Buy

March 4 (Bloomberg) -- Steve Leuthold, whose Grizzly Short Fund returned 74% last year betting against U.S. stocks, said now is the time to buy equities because investors are too fearful about the economy.

“These comparisons people make with the Great Depression are totally out of touch with reality, and pretty stupid,” he told Bloomberg Television in an interview today. “We’ve been in much worse, much more panicked and more scary situations in the U.S.”

The economy isn’t as bad as it was in 1974, when stocks began rebounding, said Leuthold, who oversees $3.2 billion at Leuthold Weeden Capital Management in Minneapolis. He predicted the Standard & Poor’s 500 Index will surge to at least 1,000 in 2009, representing a gain of 44% from yesterday’s 12-year low of 696.33.

12 Comments:

At 3/05/2009 2:37 PM, Anonymous Anonymous said...

Not off to good start today. I just wish all of these "geniuses" would stop calling the bottom.

 
At 3/05/2009 3:32 PM, Blogger fboness said...

He made essentially the same prediction last year about this time. How did that work out?

 
At 3/05/2009 3:34 PM, Blogger Chris said...

Don't forget he's a short seller, it's always the bottom!

 
At 3/05/2009 3:45 PM, Anonymous Anonymous said...

Don't forget he's a short seller, it's always the bottom!

Come again? Short sellers are negative by nature, for them, it's always the top.

 
At 3/05/2009 5:59 PM, Anonymous t jefferson said...

Just a little more pain for the equity holders and the bottom will be in. It might take ten years for stocks to move off of these levels, but the pain will stop.
Way to go Capitalism, because the deregulated capitalism of the past 30 years has blown itself up taking much of the known world with it and by now you don't have to wonder why the transformation of capitalism is changing. the best part of all this is: it wasn't the Liberals or Socialist fault.

 
At 3/05/2009 6:44 PM, Blogger OBloodyHell said...

> Come again? Short sellers are negative by nature, for them, it's always the top.

Pfh... Don't confuse the man with reason and logic. He's got a useless opinion to confer upon us all.

 
At 3/05/2009 6:50 PM, Blogger OBloodyHell said...

> it wasn't the Liberals or Socialist fault.

Yeah, the stock market hadn't stabilized for 3+ months @ ca. 8.5k at all until Obama announced all his Socialist "fixes" that have caused it to plummet yet another 1500-odd points.

Naw, it's all capitalism's fault.

Why don't you stop abusing Tom's name you worthless hack? He'd sue you for libel if he were alive to see you spouting all the crap you spout misusing his name.

 
At 3/05/2009 7:43 PM, Anonymous Anonymous said...

Way to go Capitalism, because the deregulated capitalism of the past 30 years has blown itself up taking much of the known world with it ...

Funny, when socialism "blew up" with the Soviet Union nobody noticed. I guess a system actually has to create wealth before people notice when it's having trouble.

30 years...

30 years, since Reagan corrected the disasterous course Carter had set the country on.

Almost 30 years, since a severe recession.

30 years, for spoiled little twits, like you, to forget how the U.S. became the wealthiest nation in the history of the world.

 
At 3/05/2009 8:07 PM, Anonymous t jefferson said...

Ya 40:1 leverage, cooking the Corporate books, Aig insuring without assests doesn't have anything to do with the finance markets tanking, its all Obamas fault

 
At 3/05/2009 9:05 PM, Blogger Thomas Shawn said...

One could hardly describe the last 8 yrs as laissez-faire capitalism. It was uber-managed .. in the wrong way.

The bottom is near so somebody better figure out what to do.

Timmy the Taxcheat does not inspire confidence.

 
At 3/06/2009 4:53 PM, Anonymous Menno said...

As a first time poster, I would like to start by stating that I am a huge fan of this blog. I visit something like twice weekly hoping to get a fresh perspective on current financial matters. I hardly ever leave disappointed.

I agree with Mr Leuthold in that it is difficult to ignore the unbelievable value that is present in a big variety of stocks today. What he fails to take into account is the fear of the impact of the unquestionably businessnes-unfriendly policies that are being instutued on a daily basis by our government. Untill Washington understands that it is a bad idea to run around like a bull in a china-shop and that their ‘solutions’ are part of the problem the possibility of a surge seems farfetched.

I work -for now at least- in the investment industry and this is a sentiment I hear with a very high frequency.

 
At 3/06/2009 11:28 PM, Anonymous t jefferson said...

Menno
Those unbelievable values are there for a reason there is no growth and earnings are going down. Pretty soon you will see screaming values, but buying equities based on values is stupid right now.

 

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