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Saturday, August 20, 2011

U.S. Stock Market: Who Has the Upper Hand Now - Bulls or Bears?

U.S. Stock Market: Who Has the Upper Hand Now - Bulls or Bears?

"Economist Ed Yardeni, who now runs Yardeni Research Inc. of Great Neck, N.Y., coined the term "bond vigilantes" in the 1980s to describe the institutional investor practice of selling bonds and shorting bonds of governments when they see unsustainable fiscal policies and/or other actions by governments or companies that the institutional investors believe will lower the value of the bonds issued.
Two Views of Market
With the above as background, what's ahead for the Dow and the markets? Here are the arguments:
The bears continue to argue that absent adequate, sustained, monthly job growth of at least 150,000 to 200,000 new jobs per month, the U.S. economy will continue to grow at, at best, a tepid rate, weighing on both corporate revenue growth and earnings growth. Hence, the bears see a Dow falling to 10,000, and possibly to 8,100."

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