The stock rally Friday in the face of yet another horrible labor market was most encouraging. It is necessary for stocks to advance in the face of bad news before we can pronounce the bear market over. Financials, the most battered group, rebounded sharply on the news that Hartford might beat earlier guidance, even though that guidance was far below the forecast six months earlier. The continued fall in oil prices bond yields are very favorable. But, as I have been saying over the past several weeks, stocks must rally over 1000 for the major trend to have reversed.
---Jeremy Seigel, The Wharton School, 12.8.08