If you wanted to pick a fight, or vigorous debate among stock players this summer tell them stock prices already reflect the horrific global headlines.
Which is exactly what Bob Pavlik, Chief Market Strategist of Banyan Partners perhaps unwittingly did when he sat down with Breakout. "Bad news is already priced into the market," Bob fearlessly offered just prior to Tuesday's explosive rally.
"People say 'what about Europe? What about Greece? What about Italy?" the strategist said, ticking a few items off the grizzly laundry list of headwinds. These may be unfolding global calamities but to market purists like Pavlik stocks have already looked past every one of them. The same goes for the ongoing debt-ceiling debate and just about any other known factor.
If Pavlik's theme sounds familiar it should; this is more or less what Laszlo Birinyi said in a piece we published earlier this week. Even the bears will have to concede, or at least should concede, that stocks have handled seemingly horrible, negative news with relative aplomb. The fact of the matter is stocks are barely buckling, let alone breaking, despite the fusillade of negatives. You can attribute this to what you will, "government manipulation" being perhaps the most popular and difficult to refute theory. Alas, if you're short you continue to be wrong. Besides, the market has been brazenly propped up by the government since at least 2009 and shooting against it has been a lousy bet to date.Read More »from Mega-Cap Stock Picks for a Resilient Market