A Variant Thought

Here is a variant thought that we'll discuss more in the days & weeks ahead. In the Summer of 07 almost nobody had financial scenarios depicting what we've experienced since then. Today the most talked about scenario is a market that spends the next two-three years not doing much at all. Some even talk about another leg down perhaps to 450-500 on the S&P 500*. Well....

..."Markets do what they have to do to prove the most amount of people wrong". That is one of the first lessons the Consiglieri taught me when I started in the business. The most unlooked for scenario would be a market that rockets considerably higher from here. There is a scenario that could get us to 1000-1100 on the S&P over the next year {or sooner} & 1300 by the end of 2010. This seems "pie in the sky" but the first targets would get us only to where we were early in the fall and 1300 revisits the summer of 08.

I'm not saying this will happen and I would not act on this thought without doing homework first but it is the one scenario that I have heard absolutely nobody discuss. Therefore I think we need to consider its possibility. Look for more discussions on this possibility soon.

*Long ETFs related to the S&P 500.