Saturday, January 3, 2009

What will get the money off the sidelines?

How about performance anxiety! Viagra will have to be prescribed for this year's crop of portfolio managers who are resting "comfortably" in cash. Already they are getting nervous. I suppose cash isn't seeming so comfortable now!

And performance anxiety will get the natives restless. Just look at the above chart for the returns over the last week.

Those returns induce performance anxiety!

Two weeks ago in Barron's magazine, we saw that portfolio managers had a target of 1045 for the S&P for 2009. I said you'll have that by the end of January.

Next week these targets won't seem so ridiculous. Only being bearish will.

All aboard the performance anxiety train!

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