Capped On The Upside

Looking out longer term I believe the market is capped on the upside. The government is trying to sell $20 billion in Citigroup over the next few months. They want to do a $10-$20 billion IPO for General Motors. There is over $35 billion in the IPO pipeline as private equity is trying to bring back the LBOs of past. Plus there are a bunch of companies emerging from bankruptcy. In other words there are sellers eagerly waiting.

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