Wednesday, May 05, 2010

Is the foreign bull over? Part II

Last week, I said yes.

Today's down market tends to confirm the thesis that we may be entering a period with strong dollar/weak foreign markets:

Berkowitz likes financials

BusinessWeek reports that Bruce Berkowitz, manager of the Fairholme Fund, thinks financial stocks are in the second inning of a nine-inning bull market.

BW says:
As the economy continues to recover, financials can sustain a rally reminiscent of their run in the 1990s when they rose sevenfold, said Berkowitz, who was named U.S. stock manager of the decade in January by fund-rater Morningstar Inc.

I'd tend to agree. Been buying IAT, KRE, KIE, KBE, VNQ.