In the past week or so, a number of highly-respected investors -- including long-time bears -- have lined up to pronounce the recent stock market rally the real deal.
Now former Morgan Stanley Chief Global Strategist Barton Biggs, who currently manages hedge fund Traxis Partners -- appeared on CNBC's Fast Money to say that he too thinks the current rally will develop into a long-term bull run.
Biggs told the network that "this could be a cyclical bull market that takes us to 1050 or 1100 on the S&P 500." He added, "The classic economic recovery begins with new orders and output rising, spending stabilizing, and inventories falling." There is some evidence that that is starting to happen.
Should we believe Mr. Biggs? That's debatable. A shrewd editor of his Wikipedia entry reports that Biggs has made a number of poor predictions over the past couple years, culminating in a decline of more than 30% for his hedge fund investors in 2008. In September of 2008, he predicted that the market was near its bottom, which turned out not to be the case.
Still, Biggs is a very, very smart guy and his bullish predictions are a source of comfort.
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