Tuesday, May 5, 2009

BlackRock’s Doll Says S&P 500 May Fall 11%, Led By Bank Shares

May 4 (Bloomberg) -- The Standard & Poor’s 500 Index may fall as much as 11 percent, led by financial shares, before rallying to end the year at 1,000, said Robert Doll, BlackRock Inc.’s global chief investment officer of equities.

A “correction” of financial shares could help the S&P 500 erase as much as 100 points, or about half of the rally since it reached a 12-year low of 676.53 on March 9, Doll said. A so- called “correction” is commonly defined as a retreat of 10 percent.

I think Doll's been reading my posts. Robert painted a pretty picture with the conservative estimate of a 10% pullback. You'd think he'd know more about common retracement rules in a 2nd wave. Tell the truth Robert, No need to sugar coat it. I like Dan's end of year window dressing before P3 idea (sorry I did not mention that first - hate it when that happens) and sounds like what Robert's people are thinking.
Well, at least we're on the same page (which should bother me come to think of it). If Dan's target or 933 to 943 and then a 38% retracement, the target for the big pullback should be in the SPX 836 range.

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