Lakshman Achuthan, of ECRI paid Yahoo TechTicker a visit this week. He says the pessimists are wrong, and he does not see a downturn anytime soon.
Achuthan's comments (from TechTicker):
While it's normal to be pessimistic about the future given what we've just lived through, it's also wrong, Lakshman Achuthan of the Economic Cycle Research Institute (ECRI) tells Tech Ticker.
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"The mistake in the emotional attitude is related to the size of the cycle," he says, citing a favorite quote at ECRI: "The error of optimism dies in the crisis but in dying it gives birth to an error of pessimism. This new error is born, not an infant, but a giant. That giant error of pessimism is still running rampant, and will keep most people mired in gloom, long after the Great Recession is history."
Achuthan and ECRI's considerable track record of accurate economic calls makes this forecast worth watching. He also goes on to say that although stocks are not a perfect leading indicator, it is unlikely that we'll see an stock market downturn anytime soon.
Again, this is what he calls the error of pessimism, a bullish sign - as long as we are still feeling skeptical about the market and economy, the market may continue to climb its wall of worry.
