Leuthold Group CEO Steve Leuthold has officially left his decade-long bear position.
“Right now, I am not a super-bull, but I am a very convinced and optimistic bull,” Leuthold told Barron’s.
The intrinsic value of stocks is the most positive since 1984, Leuthold says.
"On a valuation basis, this is a really cheap market," he notes.
Leuthold notes that, compared to markets over the past 55 years, today’s market is now well into the bottom quartile, which is where markets very often have bottomed out.
“At these levels, we are really down in bear-market territory, Leuthold says.
“From here, on a one-year basis, and this goes back to 1926, the market has been up about 18 percent, on average, in the next year."
Bulls are starting to come out of the woodwork, says Corbin & Company CEO David Corbin.
“We could have a huge rally,” Corbin says.
“The Fed is pumping up liquidity, and sooner or later some of that is going to find its way into the market,” Corbin told Barron’s.
Corbin expects the Dow to hit 11,000, the S&P to reach 1,200, and the Nasdaq to rally to 2,100 by year-end.
Dividend yields on stocks are "getting astronomical" relative to money yields, Corbin notes.
"Why earn 1.56 percent on a deposit for two years when you can earn 6 percent (on stocks?)" Corbin asks.
“My biggest problem now is deciding what to buy.”
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