Dow 10,000, Revisited: Paul Kedrosky Sees Stocks "Considerably Higher" by Year-End

Dow 10,000, Revisited: Paul Kedrosky Sees Stocks "Considerably Higher" by Year-End

CARLSBAD, CALIF. -- Stocks rallied sharply Wednesday, resuming the climb off the March lows, a move Paul Kedrosky attributes to the "‘the world hasn't ended' trade plus inventory restocking."

Citing the ongoing skepticism in the rally's staying power (a contrarian indicator), the Infectious Greed blogger and senior research advisor to Ten Asset Management believes the market is likely to "saw-tooth [its] way considerably higher through the rest of the year."

How considerably?

Kedrosky thinks the S&P could approach 1100 by year-end, which would translate into the Dow well above 10,000.

Despite the doom and gloom, the Baltic Dry Index has been ticking up for much of 2009

Despite the doom and gloom, the Baltic Dry Index has been ticking up for much of 2009, and that’s typically a sign we’ve got demand in the economy again. Yes and no, says my guest investor and blogger Paul Kedrosky.
It is a sign that the economy isn’t going to zero: That’s good. But amid the late 2008 panic inventories had gotten so low that an increase in orders is more a re-stocking than it is a recovery.
That said, there are a few speculative bets for investors with a high risk tolerance, especially among semiconductors. Watch the video for Kedrosky’s picks.