I’m very struck by the level of bearishness everywhere I go. I’m not obsessed with history. I’m bullish because I think the global economic recovery is on track and is going to be surprisingly strong. The world was falling apart in 2009. There’s been a tremendous change.

Barton Biggs, who is expecting an additional 10-15% leg-up in the market for 2010: via Bloomberg

My recommendation would be for this typical investor to think outside the U.S., and when he thinks about the U.S. to be exclusively defensive blue chips. The chances of a softening again, not a big collapse, but a secondary softening in the economy are higher than the market believes.

Jeremy Grantham, GMO, who views fair value for the S&P 500 at 875, 24% below the present value: via Bloomberg

Individual investors as measured by mutual fund flows have absolutely no current enthusiasm for equity investing. As a contrarian I view this environment of disbelief and skepticism as quite bullish.

Steve Leuthold, March 5 report to clients: via Bloomberg. This comes on the heels of $369b of inflows to bond funds since March 2009 vs an inflow of only $23.4b for equities.

Today, we should all be paying attention to a new theme: the simultaneous and significant deterioration in the public finances of many advanced economies….Down the road, it will be recognised for what it is: a significant regime shift in advanced economies with consequential and long-lasting effects.

Mohamed El-Erian, CEO of PIMCO: via FT.

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