There is a story circulating on the business tabloid for tots that is touting Tom Lee’s incredible accuracy as it relates to his 2012 S&P call.
Lee called 2012 to end at 1,430 and it just so happens that today closed at 1,430. Before you reallocate your portfolio to what he recommends, here is a little context.
First, in 2011, Lee called the S&P to end up at 1,475. It closed at 1,257 (said otherwise, 17% off from his projection). Strangely we didn’t see any headlines saying he was making doubters of his commentary look stupid at that point.
With a little help from his friends…
As we all know, the market this entire year has been kept afloat by either the promise of more central bank action, or the deed. Either way, that is not a reason to celebrate someone who had the guts to… LOWER his S&P target from his original 2012 beginning point.
Here is the S&P this year before & after Bernanke made some reassuring comments – ie: putting a floor under equities for 2012.
He also said back in 2011 when he made his bullshit S&P call that he didn’t see any recessionary indicators coming out of Europe, and that they should be just fine in 2012. Mmmm, ok, let’s let that slide. However, once again, he’s not going to end up looking too bad to the naked eye with a little help from his friends.
So as you can see, if you’re awful at your job, it helps to have friends to bail you out. And also friends in the “media” who will make sure to publish the results (if they’re good).
As a reminder: There are still a few trading days left this year, don’t give him his promotion quite yet.