Wednesday, August 12, 2009
Yes, Virginia, you can occasionally find markets that are ridiculously inefficient
Via FT Alphaville:
Gluskin Sheff chief economist David Rosenberg makes a lucid point in his Wednesday report:
It does appear that we have some groupthink to consider — virtually everyone at this stage is now bullish on the market. This could mean that we are not going to get a lot more buying power to propel this equity rally over the near-term as it means that we have a lot of good news priced into the market. As an example, a CNBC poll released yesterday showed that 90% of Wall Street economists believe the recession has ended. It is highly unlikely that 90% of the economics community can be right on the same thing at the same time.