by winston » Sun Apr 01, 2012 6:40 am
Strength begets Strength
With the stock market posting its strongest first quarter in more than a decade Friday, Adam Sarhan, chief executive of Sarhan Capital, sees more gains to come, saying "strength begets strength."
"Most people 'missed' this rally and that is a net positive for future price gains," says Sarhan. He'll get concerned when investors get over-confident about the market going higher.
"Instead, I'm hearing most people say they either missed this rally or are long, but not long enough," he says.
Overall, leadership or leading stocks have expanded nicely over the past few months, which bodes well for the bulls, Sarhan asserts.
Several key sectors have participated in this rally, not just one or two random groups, he points out. That housing and financial stocks have been participating in a big way is a good sign for both the major averages and the broader economy, he adds.
Since the March 2009 bottom, the two primary concerns that have caused temporary, albeit violent, pullbacks in the stock market have been European Union debt woes and global growth woes -- either a double-dip recession or a global economic slowdown.
At this point, both of these concerns have been allayed or at the very least minimized in the near-term, Sarhan says.
Source: The Street
It's all about "how much you made when you were right" & "how little you lost when you were wrong"