New BULL market has begun !!!!

Markets are responding to the following positives :

-President Obama & his team on MANY QUICK/TIMELY initiatives...

-TARP funding of everything....

-Mark to MODEL accounting for Banks....

-Interest rates for mortgages below 5%....

-G20 funding of $1 trillion in new support for struggling economies....

-G20 resolve to contain hedge funds & oversight of all financial institutions....

-Stimulus package of $800 billion in US

-Stimulus package of almost $700 billion in China.

-Worldwide interest rates are near all-time lows.....

-Economy showing sign of life in US,Europe & China....

-Uptick rule being restored

All of the above have created a market which IS healthy and has moved UP by 24.82% in Dow,26.82% in S&P 500 & strongest of all Nasdaq 28.26%.....from Lows in March !!!!

So....

How high can we go !!!!

As this bear market was the worst since depression...so we should look BEYOND average recovery..means HIGHER than average return from LOWS.....

Here is the AVERAGE return on Dow from bear market lows since 1929 :

1 year 55.62%

3 year 77.56%

5 year 103.41%

I have an OPINION....... that this time around the % gain in each of the time period MAY be as much as DOUBLE of listed above......

So as a very famous song says....

WE HAVE ONLY JUST BEGUN.......

So what looks the-best in terms of opportunity which will even OUTPACE the average HYPER return.....???

It is the Technology sector.....

Technology remained healthy with lots of cash & debt free...they are also the-most productive...

Try to compare that with any other industry.....

Technology also will be the FIRST to increase Sales & EPS with growing demand..as CHIPS are in everything from Autos to Ships ......

Most technology FRONT LINE stocks are trading near lowest PE in 3 years some as low as 1/3rd ......so with time there is a CHANCE that TECHS MAY TRIPLE going forward.....

There is $300 trillion sitting in money market earning almost 0%...ready to jump back in stocks as confidence is built in markets.......IMAGINE that...it will be very CROWDED @ entry point in most QUALITY stocks......

Try to stay with leaders in each sector in a industry-wide diversified mode.....

Here is some attractive names with PE based on 2010 which I own OR looking @ taken from MSN Moneycentral :

RIMM..... 13.38 2/11
AAPL......19.76 9/10
GOOG.....17.73 12/10
GNK.......4.64
IPI.........6.91
AGU.......5.80
POT.......6.82
CMED.....7.59..3/10
SOL.......8.35

You can do the same analysis as above on many other stocks with excellent results going forward.....

I will strongly urge you.....to ensure your OWN comfort level with your OWN due diligence ALWAYS......


YES...there will be profit taking & PULLBACKS along the way...

BUT....

TREND IS YOUR FRIEND !!!!

BLOG does NOT give buy or sell.

Saleem