Bernanke Says Recession over by Years End

Yesterday The Federal Reserve Chairman Ben Bernanke stated that he feels the recession will be over by the end of this year. That in of of itself seems liek a bold move, however, the stock market didn't react liek I think it should have.

Even though the DOW went up 250 point after those comments, it has fallen back down today. If in fact the recession does end before 2009 is over, stocks surely will have an amazing comeback. The market is already undervalued, down 50% from it's highs 2 years ago. The Stock market is usually 6 months forward looking which would put us at around August of this year in terms of where the market is looking out to. I'm going to call this and say, the DOW will Not see 6900, and by December of this year we will be looking at at least a Dow of 9200.

The amount of pessimism out there, mostly brought on by the media as well as Obama's negativity he was spewing in order to get the Recovery act and his stimulation plan pushed through congress, has devalued the market much mroe then it should be. Is it a buying opportunity?

More can be read about the economic situation and how it is effecting the stock market, at the Trading Lounge