Excessive Overbullishness Getting More Excessive

Generally speaking, on contrary to popular beliefs, markets are uncorrelated with the economy. But this is normal given that they raise and fall with sentiment, and not with fundamentals, and that politicians and central planners have been spreading oil on the fire, massaging economic and employment figures for decades, but now reaching epic proportions since 2009, believing that higher markets improve economics.

In this odd reality of our world where the 'experts' would more likely be qualified as madmen in a rational world; it's not surprising to see all the expert to call for even higher levels:

GS forecasts massive rally in 2013 and ending the year at 1,575 on the S&P, BofA aims at 1,600, and Citi 1,615 although surprisingly, MS forecasts a big drop to 1,167

UBS and CS aim at 1,500-1,525 for the year end.

Another analyst forecasts Apple Shares to Hit $1,650 by Late 2015

More from Bloomberg:
Goldman Sachs Group Inc. forecasts an 18.2 percent return from commodities in the next 12 months, with energy and industrial metals leading the way.  
Another Bloomberg report states
Bullish commodity wagers rose to a 16-month high just before the Federal Reserve’s pledge for more stimulus drove prices to a seventh weekly advance and banks from HSBC Holdings Plc to Citigroup Inc. forecast more gains. 
Yet another Bloomberg report is titled: Stocks Show Americans Better Off With S&P 500 Cheap to World. Here are a few selected quote from this report:
“We are in a healthier state right now,” Chris Hyzy, who helps oversee about $325 billion as chief investment officer of U.S. Trust in New York, said in a Sept. 12 phone interview. “Next year, we think the growth clip in the United States and the globe is going to be better than expected. Over the next three years, we are bullish.

“Our economy and our banking system are in better shape than others,” Chanos said last week in an interview at Bloomberg’s headquarters in New York. “I suspect that the surprises will probably be on the positive side in the U.S. market.”  [Even Chanos is Bullish?!]

I think we’re dramatically better off than we were,” Cohen, the senior U.S. investment strategist at Goldman Sachs, said in an interview at Bloomberg’s headquarters in New York last week. “The market is telling me that investors are generally confident that we’re on the right path.

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