if this happens, Obama wins in a landslide and the House goes back to Democrats
(as a side note, its amazing how primitive we still are, as a people. We'll base on votes on superstition... for example, if the stock market rises, it must be because the President is a powerful sorcerer.. we better reelect him.. whereas, if the market falls, it must be because the President has no magic and we need to replace him.. when in fact, the President and the markets are totally unrelated.. .like a full moon and madness.. yet, the PERCEPTION is what drives the primitive beasts)
Birinyi: This market could rally like it’s 1995
March 1, 2012, 10:02 AM
With the Dow Jones Industrial Average finally regaining the 13,000 mark this week, what other bull-market milestones are there to be seen on the horizon?
At Birinyi Associates, it’s a 1,700-point S&P 500 Index sometime later this year, according to the money management and research firm’s March 2012 Reminiscences newsletter.
While a Dow close above 13,000 was a running dream for 45 months, the highest the S&P 500 has ever hit was 1,576.09 back on Oct. 31, 2007.
Birinyi offers 1994 and 1995 as a template for 2011 and 2012. “While there are an abundance of similarities and parallels (and admittedly differences) there was a total fixation on higher rates and equity expectations were muted,” the firm wrote.
Over 1994, the S&P 500 declined 1.5% to 459.27, while over 1995 it rallied 34% to end the year at 615.93.
“We are not insisting on a repeat, but do believe that investors should consider the possibility; in 1995 the consensus trade was higher yields, today it is tepid economic growth and the market is suggesting — perhaps insisting — an alternative to that consensus,” the firm wrote.
So it looks like we have 305 days to find out if Birinyi’s projected 435-point rise, or 24.5% increase, in the S&P 500 comes to pass.