This week, I will ask 10 questions to both the bulls and the bears, the answers to which will help us determine the outlook for equities over the balance of the year and into 2012.
Today I will start by asking 10 questions to be addressed to bullish investors. (Later in the week, I will get to the bears.)
- Pace of domestic economic growth: As visibility has been reduced, do you still believe that domestic recovery growth will be moderate and will not double dip? As I have previously noted, do the rather obvious and ominous deflationary signals (e.g., lower real incomes in Friday's report, plunging commodities and the technical breakdown of the market, in general, and industrial and transportation equities, in particular) suggest a more adverse and different economic outcome to the bullish consensus? Or are the latter two factors, in particular, laying the groundwork for more positive ingredients and reagents to economic and profit growth (e.g., lower commodities seen as a "tax cut" and a positive for corporate margins) and more attractive equity entry points?
