05/07/09 Baltimore, Maryland Today’s contrarian indicator: Bill Miller is bullish and buying shares of banks and credit card companies.
The Legg Mason “legend,” based right here in Baltimore, famous for beating the S&P 500 15 years in a row, is now quite infamous… for buying Fannie Mae, AIG, Bear Stearns, WaMu and Wachovia all the way to the bottom.
This morning, all we can do is cringe. Miller is setting himself up as the historical proxy for the mainstream disaster of the day.
The current “bull market,” reasons Mr. Miller, grasping at straws, is behaving “much more like the rally that ended the 1973-1974 bear market or the one that began off the bottom in 1982 or even that which erupted in March 2003 from the last debt deflation scare.”
Banks, he believes, “have the biggest potential to outperform.” Wells Fargo, Capital One and American Express are his favorite speculations. This guy will chase anything. In response, we’d like to announce our latest additions to the short watch list: Wells Fargo, Capital One and American Express.
Media mogul Rupert Murdoch thinks “the worst is over” too. “There are emerging signs in some of our businesses that the days of precipitous declines are done,” said the man behind Fox yesterday, “and revenues are beginning to look healthier.”
Still, News Corp. is forecasting a 30% drop in profits in 2009.
Addison Wiggin
Addison Wiggin is the executive publisher of Agora Financial, LLC, a fiercely independent economic forecasting and financial research firm. He’s the creator and editorial director of Agora Financial’s daily 5 Min. Forecast and editorial director of The Daily Reckoning. Wiggin is the founder of Agora Entertainment, executive producer and co-writer of I.O.U.S.A., which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival, the 2009 Critics Choice Award for Best Documentary Feature, and was also shortlisted for a 2009 Academy Award. He is the author of the companion book of the film I.O.U.S.A.and his second edition of The Demise of the Dollar… and Why it’s Even Better for Your Investments was just fully revised and updated. Wiggin is a three-time New York Times best-selling author whose work has been recognized by The New York Times Magazine, The Economist, Worth, The New York Times, The Washington Post as well as major network news programs. He also co-authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner.
The Daily Reckoning is your premier source for making sense of the news Washington and Wall Street generate. Each business day, The Daily Reckoning calls on its stable of world-class writers and thinkers to show you how to get ahead.
Start your 100% FREE subscription to The Daily Reckoning today and you’ll get a free research report, “How to Survive the Fall of Social Security.” Simply enter your email address below to get your free report and join over 495,000 worldwide Daily Reckoning subscribers!
We Respect Your Privacy and We will
Never Share or Sell Your Email Address
Balder Dash
Awesome, I guess Murdock must be hiring then.