He has been bullish on the market since then. He is a supporter of QE2 and he thinks the tax cuts enacted by the US Congress and the President exceed his expectation – these two doses of medicine will keep the economy rolling. He sees S&P 500 index earnings coming in at $94 and the market is selling at about 13.5 of that value.
You have to give the professor credit for being optimistic: not weak first time unemployment benefit claimer number, not interest rate raising, not record level of foreclosure, not state and municipal budget problems – no, none of these factors is going to derail the market rally and economy recovery.
He sees the US economy grow 4% for the year and he anticipates the Fed start to raise interest in the second half of the year because of the economic strength.
In a word, he sees nothing but good.