Two Bullish Calls Driving Markets Higher
We have experienced the brief euphoric one-month “pop” phase of the typical equity market recovery from a bear market low (27% rally from 667 to 850), endured the characteristic several-month long range-bound “stall” period (10% range from 850 to 940), and now we anticipate a more extended “sustained rally” in the U.S. equity market during the second-half of 2009.
– “Pop, Stall And Sustained Recovery”, Goldman Sachs, July 20
A couple of bullish calls this morning are driving stocks higher.
Goldman Sachs called for a second half rally and raised their year end S&P targed from 940 to 1060. (On Goldman’s year end targets also see “Goldman Sachs Raises Year End Price Target – Should We Care?”, BeSpoke Investment Group, July 20).
Bank of America upgraded Caterpillar (CAT) shares to buy saying that saying that construction machinery sales likely bottomed in the second quarter and will begin a recovery in the first half of 2010. The analysts based their conclusion partly on a survey of equipment dealers who reported sharply lower inventories and an improved purchasing outlook over the next six months.
Disclosure: Top Gun has no position in Caterpillar (CAT) shares.