Paul Hickey: Stocks Will Reach New Highs

Posted by Mike Tirone - Wednesday, June 22nd, 2011

Paul Hickey, co-founder of Bespoke Investment Group, breaks down the outlook for the U.S. equity market, investor sentiment and the economy.

Much of what Hickey talks about, with Bloomberg Television's "InsideTrack" is on the status of the U.S. economy.

Some quick notes:

-The U.S. has historically picked up even stronger after foreign natural disasters, in reference to Japan's earthquake in March.

-Two economic indicators; U.S. initial jobless claims and the ISM manufacturing, are very similar to the last large earthquake in Japan back in 1995. These indicators from that Kobe Earthquake in 1995 are going hand-in-hand with our present problems from the 2011 March earthquake and Hickey is not surprised.

-Six months after the 1995 earthquake, the market picked back up and Hickey believes the same will happen this year.

-Investors are so afraid of having another sell off, so they need to look at our lows as a big buying opportunity.

-The market is undervalued right now and there is a negative sentiment in the market. So the mentality needs to shift.


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