Ritholtz: Time for a Wish List

Barry Ritholtz of The Big Picture blog and FusionIQ is the latest well-known bear to turn bullish, notes Yahoo! TechTicker.

In an interview with Aaron Task of TechTicker, Ritholtz says that the market has reached levels at which he’s seeing a lot more upside than downside. “If you’re a long-term investor, at the very least you should be making a wish list” of stocks you’ve been wanting to own but which may have been too expensive in the past.

Ritholtz says FusionIQ has covered all of its shorts, but is still running a lot of cash right now. “We’re not full-bore back up the truck yet,” he says of his firm’s position on equities.

Still, Ritholtz is starting to like what he sees from stocks, given that they’re now 50 percent cheaper than they were a year or so ago. “It’s certainly possible we go to 6,000, 5,600 [on the Dow]. But you know, you miss 8,000 points to the downside [already], are you really worried about that last thousand points?” he said, referring to someone who had recently asked him about whether they should sell out of the market now. “It’s almost as if, who cares [about potentially losing another thousand or so points]. It’s the penalty for being a little early, but that’s why you scale in over the course of six months to a year and don’t try to pick the precise bottom. You want to catch on average that rounded bottom before the next big bear market rally — and there is a big bear market rally coming.”

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