A Rocky Balboa Stock Market

We believe the S&P 500 around $1,100 is positioned almost exactly in the middle of a “secular bear market” trading range, which we expect to exist for the period 2000-14. At this point, investors may be entering the Rocky Balboa home stretch of "punch drunk" volatility. In a short cycle sense, U.S. stocks may now be a “mid-bull,” e.g. volatile, with a less steep rise to 2010/11 in which the S&P 500 may peak at $1,250 in 2010, $1,350 in 2011.


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