I think these opposite views on the stock market over the next months are really interesting. Just from that we can confirm that indeed nothing is a sure thing. It will be interesting to revisit this in a few months after we know how it has played out.
While everything is possible due to short-term fluctuations or sentiment, investors would probably avoid highly priced stocks, while traders might as well go for it. Then there is of course a third group trying to short stocks. Everyone has to set his priorities, time-frame, conviction, and risk (e.g. stop-losses).
One thing I am always looking for are inconsistencies in the popular opinion. This is certainly the notion that money will now flow out of real-estate into stocks. What money, I would ask. It already has been flowing out of real-estate, with lower and lower payments and cash-out refinancings. Chances are that money has to start to flow into real-estate to bring up people’s equity or get out if they are under water.
