For over a year, advisors and investors have wondered, “How low can it go?” Now, the tide has turned.
Since the March lows, the S&P 500 (SPY) staged the biggest advanced recorded since the Great Depression. After a six-week winning streak, advisors and investors are itching to know if this rally has legs, and, more importantly, if the March lows represent the ultimate bottom of this bear market.
The recent earnings reports have been quite encouraging. Wells Fargo, Goldman Sachs, JP Morgan, Citigroup, GE and Google reported better-than-expected earnings. The Vanguard Financial ETF (VFH) now trades over 60 percent above its March lows.
Even long-time bears like Nouriel Roubini, one of the few economists who foretold the real estate/financial meltdown, and George Soros, the billionaire investor who came out of retirement to steer his Quantum fund to an 8 percent gain for 2008, belief that the worst is behind us.