Wall of No Worries

Originally Published in Charting the Market 7/13/07

Sick of cliches? You must be short, because this market continues to climb a wall of worry.  Pessimism by options traders dominated put/call readings two weeks ago, as ratios spiked due to sub-prime fears.  Aggressive Growth stock funds continued bleeding assets into the spring but Tech is now leading the parade.  And don’t you know, analyst Buy ratings continue to be scarcest they have been in nearly a decade, but the S&P 500 is shrugging all of it off and putting up a new 52-week highs. Valuation continues to underpin the market, and with at least one prominent seer looking for ‘07 S&P earnings of $104, a little bit of multiple expansion could go a long way. Slap an 18-19x on his estimate and see what you get....  By the way, did you write this stock (INTC-NASDAQ) off, just like everyone else? What a difference a year makes.  Capital Research wins again. No Position

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