Sunday, April 06, 2008

April Fools Hoax Part of Rally?

Alan Abelson's column yesterday brought to light an extremely bullish column written by uber-bear Doug Kass. Of course the whole thing was an April Fool's joke, and yet, as Barry Ritholtz mentioned in his blog, several "elite" (Bloomberg, WSJ) members of the financial media took the article for its actual contents. The market rallied on the day, and while correlation might not imply causality (there was also other "bullish" news, including the fact that Lehman and UBS are raising capital), it would be hard to say that Kass' column wasn't instrumental in part of the bump.

One line from Kass' column: While I initially expected a 5% to 10% decline in the S&P 500 this year, my new year-end S&P target is 1,666, for a gain of 26% from current levels. I might be low.

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