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September 25, 2008

Marc Faber: 14% S&P 500 Rally Post-Paulson

Kilgore: Someday this war is gonna end.

      -- Apocalypse Now (1979)

Marc "Gloom, Boom, & Doom" Faber wins the prize for big, hairy audacious market goal post-Paulson plan acceptance. He says we could see 1,350 on the S&P 500 over the next little while, which would take us about 14 percent above current levels. Mind you, Marc then thinks the wheels come off equities as earnings disappoint on continuing consumer weakness into 2009.

I'm more or less with Marc on this, as I've said here before. Without a credit apocalypse now,  I still think we have a nasty spell coming later this year, or in early 2009, as poor earnings and an over-valued S&P 500 run smack into one another, and as the U.S. merrily exports economic weakness. All of this makes credit markets looks more interesting to me (post Paulson), where commercial paper could see some big moves as issues falls back from the precipice.

More here.

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