Wednesday, April 9, 2014

The markets have more upside for now

If you look at the S&P, if you decompose the gains last year, the vast bulk of the gains did not come from earnings or revenue increases, they came from stock buybacks.

For me 1,950 is what I'm looking for on the S&P, so risk-on I guess for another month or so.

I think there's some small upside but I think the other thing is positioning and sentiment got a little bit wiped out earlier this year. And that means I think there's space for markets to get overboard again.