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Economy and Market Going to Blast Off from Here, Altucher Says

Posted Oct 27, 2009 10:00am EDT by Henry Blodget in Investing, Recession

Ever since the market bottomed in March, a parade of bears have warned about all manner of coming calamities:

  • An end to the "sucker's rally"
  • A collapse of the financial system
  • A double-dip recession
  • A commercial real-estate collapse
  • A decade of "deleveraging" as consumers recover from a drunken debt binge

Ridiculous, says James Altucher, managing director at Formula Capital.

The economy is recovering nicely, says Altucher, and 2010 is going to be a huge year.  Companies that stopped making things and fired thousands of employees last winter out of fear of a second Great Depression will restock their shelves and start hiring like mad. The federal stimulus, which has barely kicked in yet, will really get cranking. Consumers will find jobs much easier to get, and the resulting optimism (and income) will prompt them to start spending again.

And the market?

It's going to the moon, says Altucher.

In fact, the biggest thing Altucher is worried about is another monster bubble, which the Fed will have to stomp out by raising interest rates too quickly. But that's a year away. In the meantime, he's confident the recovery will knock your socks off.

315 Comments

popey
popey - Tuesday October 27, 2009 10:08AM EDT

so why are layoffs continuing? deflation is continuing? the consumer is spent.

hadenoughgov
hadenoughgov - Tuesday October 27, 2009 10:09AM EDT

What a MORON!!!!!!

Terry
Terry - Tuesday October 27, 2009 10:10AM EDT

The best regulatory reform for Wall St. would be to replace most of Congress. No Senator should be in office more than 2 terms (12 years) and no Congressmen/women should be in office more than 3 terms (6 years) otherwise they do too much harm to us all. VOTE OUT the INCUMBENTS in 2010...

.
. - Tuesday October 27, 2009 10:10AM EDT

...and a loaf of bread will costs you $1000. Nice job a-holes

SANTA SEZ....
SANTA SEZ.... - Tuesday October 27, 2009 10:10AM EDT

Zero rate dollar = asset bubble.... S&P PE is 168 = bubble pops.

cannoli
cannoli - Tuesday October 27, 2009 10:11AM EDT

Where did they drag out this yutz from? He evidently does not know what is going on. What kind of jobs are going to be created more government jobs?? Employment is still going up what can people spend money on with no job.

L D
L D - Tuesday October 27, 2009 10:11AM EDT

This guy is smoking grass.

dumpweed
dumpweed - Tuesday October 27, 2009 10:11AM EDT

Very nice, I like! RIght

SANTA SEZ....
SANTA SEZ.... - Tuesday October 27, 2009 10:12AM EDT

LAW OF MEAN REVERSION........ If something cannot go on forever, it will stop. Zero rate dollar = asset bubble.... S&P PE is 168 = bubble pops.

Terry
Terry - Tuesday October 27, 2009 10:14AM EDT

The same people that got us all into this crisis are still in power and we need to get rid of them to send a message that we are not going to take it anymore. Congress keeps voting themselves raises and more percs while everyone else is getting screwed for the next few generations. The best regulatory reform for Wall St. would be to replace most of Congress. No Senator should be in office more than 2 terms (12 years) and no Congressmen/women should be in office more than 3 terms (6 years) otherwise they do too much harm to us all. VOTE OUT the INCUMBENTS in 2010..

Yahoo! Finance User
Yahoo! Finance User - Tuesday October 27, 2009 10:14AM EDT

GOLD GOLD GOLD

SANTA SEZ....
SANTA SEZ.... - Tuesday October 27, 2009 10:14AM EDT

Was this guy in "PORKY'S"??? He looks familiar.............

Yahoo! Finance User
Yahoo! Finance User - Tuesday October 27, 2009 10:14AM EDT

The ONLY PLACE....This Market & Economy Is Going.......DOWN, DOWN ,DOWN ,DOWN ,DOWN ,.....Down The "TOILET" Along With ....The U.S. Goverment....!!!!!! DOWN THE TOILET....!!!!!!!!! Repeat After Me:.....DOWN THE TOILET....

Rosepw
Rosepw - Tuesday October 27, 2009 10:15AM EDT

This little guy is on to something. I can not get a handy man or tree trimmer for weeks. They are all busy and have work piled up. Everyone is working on my street. There are no houses for sale on my street here in Florida. The Fed needs to raise at least 1% or we will soon be in a hell of inflation. Healthy Milk is alreay $ 8 a gallon. Our doctor bills are going throughthe ruff. The new CoolAid is "unemployment" to scare us into low interest rates. So the Bankers can profit.

Yahoo! Finance User
Yahoo! Finance User - Tuesday October 27, 2009 10:15AM EDT

This guy is hooked on phonics. First of all, no one is spending or will be spending for the next few years. There are no jobs and many are in fear of losing theones they have. Second, there are millions of foreclosures that have not been put on the market yet and this will take years. Third, avg . PE ratio for most s& P co.s are at 148. This is insane. Fourth , the government has driven the dollar into the toilet. Don't listen to this retart. Sell Sell Sell!

Wayne
Wayne - Tuesday October 27, 2009 10:18AM EDT

A HOT HEAD FULL OF CRAP. HIS REAR END IS TALKING.

michaelsblom...
michaelsblom... - Tuesday October 27, 2009 10:18AM EDT

Please keep this post so this clown can revisit his asinine projection/statement Q2 2010. I am all for being optimistic, but reality must enter the equation. The consumer is tapped out and jobs are very scarce. Those who find work do so at a fraction of their prior wages. There is no way to inflate our way out of this mess. What makes this crisis so unconscionable is the lack of prosecutions. Providing loans to borrowers with no income documentation was not laxed lending guidelines it is and was loan fraud. The fact that all lenders, rating agencies and i-banks promoted and participated in this madness is a conspiracy. Where is the FBI?

TumblingDice5
TumblingDice5 - Tuesday October 27, 2009 10:19AM EDT

I just put on my Elvis Costello CD with the song, "PUMP IT UP". I like Altucher's positivity, however, I need to see more numbers backing up his claims. In the meantime I just think this is a false PUMP for the MARKET.

Yahoo! Finance User
Yahoo! Finance User - Tuesday October 27, 2009 10:19AM EDT

Is that a rug he has on?

Yahoo! Finance User
Yahoo! Finance User - Tuesday October 27, 2009 10:21AM EDT

Get a real job and things might recover. Agree, out with all the incumbents.

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