New Book: Super Boom - Why the Dow Jones Will Hit 38,820 And How You Can Profit From It

Jeff Hirsch just released the book Super Boom: Why the Dow Jones Will Hit 38,820 and How You Can Profit From It. Of course, I have never heard about this guy, but what is important is the fact that such crazy forecasts are making headlines, and that journalists are giving these crazy lunatics airtime to discuss their ideas.

The Reason?

Strategists, Analysts, Fund Managers, Market Commentators are all completely sucked into this rally of historical proportions and are consequently showing historical level of bullishness, completely disconnected with the reality of the world surrounding them. They are seeing buying opportunities, bargains everywhere. The only thing that are not bought aggressively are the USD and the US Treasuries, the two real and only bargains in this market.

See for yourself, some random headlines found online:

• Invest in Europe Without Fear: S&P’s Young: "Do not over-think this stuff, invest in Europe."
• Government Shutdown Won’t Hurt Stocks: S&P Strategist 
• Jeff Hirsch: Dow 38,820 interviewed on Yahoo! Breakout. He just released the book Super Boom: Why the Dow Jones Will Hit 38,820 and How You Can Profit From It. Quote from the interview: "Whatever it is that you do to trade, do it, it will work".
• As per every quarter, Cisco collapses after publishing their quarterly earnings. Yet, here's the typical headline: Cisco Stumbles: Why Now’s the Time to Give It a Look
• Europe Strategists Twice as Bullish as U.S. as Net Rises 20%: the single currency posted its biggest first-quarter gain on record — investors don’t expect the debt debacle to spread — Earnings for Stoxx 600 companies may rise 20 percent in 2011.

April 11 (Bloomberg) -- European companies are reporting the biggest profit rise in six years as the region’s economic expansion overcomes the sovereign debt crisis, making stock strategists almost twice as bullish as their U.S. counterparts. 

While Portugal became the third euro member to seek a bailout from the European Union, the benchmark Stoxx Europe 600 Index rose 0.6 percent last week, extending its two-year rally to 78 percent. The region’s single currency posted its biggest first-quarter gain on record. Yields on Spanish and Italian bonds are falling compared with German bunds, a signal investors don’t expect the debt debacle to spread. Equity valuations are near two-year lows. 

Earnings for Stoxx 600 companies may rise 20 percent in 2011, led by exporters from Bayerische Motoren Werke AG to Cie. de Saint-Gobain, according to data compiled by Bloomberg. The increase would bring the two-year gain to 93 percent, the most since 2005, leading 11 strategists tracked by Bloomberg to predict an 8.1 percent rise in benchmark indexes. U.S. forecasts show the Standard & Poor’s 500 Index will gain 5.3 percent. 

“Profits are there and this shows us the economy is in good health,” Alain Bokobza, the Paris-based head of asset allocation strategy at Societe Generale SA, which manages $300 billion, said in a phone interview from New York. “Equities should remain resilient.”