While bad news headlines continue to slam public perception and stoke the fires of fear daily, reality tells a different story—one of early recovery.
Let’s take a look at what markets around the world have been saying about the future for the past month.
After bottoming out at 7600, the Dow has recovered to test 9000.
Similarly, NASDAQ has added around 2500 points or more than 15 percent from recent lows.
The S&P 500 is up a comparable 20 per cent from its bottom of 750 to recent levels above 900 points, as is the broad based Wilshire 5000.
We can see the same story internationally, with Hong Kong’s Hang Seng Index up from the mid 12000 level to 15000-plus, and Japan’s Nikkei also solidly off lows.
Large cap and small cap markets alike are showing signs of early recovery. The Russell 2000 has added around 20 percent in the past month.
The story is always the same. Most of the time, most of the people are on the wrong side of the markets. And while the herd remains transfixed in the headlights of horror-show headlines, and will likely stay frozen by fear for months to come, the smart money has already started to find exceptional value in what will likely be remembered as a generational buying opportunity in stocks.
