How Wrong Can A Respected Investment Analyst Get It? – Completely!
From The Wall Street Journal “Market Watch”, March 27th 2008:
Richard Band is not someone who makes outlandish predictions just to get headlines.
So I sat up and took notice earlier this week when he wrote to subscribers of his Profitable Investing newsletter that the stock market was ready to “rocket higher” in an “uptrend that could carry the blue chip indexes to all-time highs by late 2008 or early 2009. Dow 16,000 here we come!”
Technical factors appear to have led Band to make such a bold prediction, which amounts to a 33% return for the overall market over the next 12 months. The first has to do with the stock market’s internal characteristics when it hit a low earlier this month. Band argues that that low possessed “many striking technical resemblances to the great bear market bottoms of the past.”
I wonder what the guru says now? Technical factors even back in March suggested the DJI was going south and not north. Some people are blinded by their own stupidity, some just by plain wishful thinking.