I think we will do better from here on, and that by far the worst is behind us. I think the credit panic ended with the collapse of Bear Stearns, and credit spreads are already much improved. Although the economy is likely to struggle as it did in the early 1990s, the market can move higher, as it did back then.
Most housing stocks are up double digits this year despite dismal headlines, a sign the market had already priced in the current malaise. I think likewise we have seen the bottom in financials and consumer stocks, but not necessarily the bottom in headlines about the woes in those sectors.
~ Bill Miller, portfolio manager, Legg Mason Value Trust, "Legg Mason's Miller sees recovery for stocks," MarketWatch, April 23, 2008