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What happened to Richard Bernstein, preferred pessimistic on Wall Street? It is now an optimist.

Former Merrill Lynch Chief Investment Strategist built a reputation as a conformist of the 2000s, the era of cheap credit. Real estate prices soared Bernstein was a bubble and told to abandon demo stock investors. When subprime have began to sour, he warned against the danger to the banks.Scepticism earned her anger inventory amplis.Bernstein has been regarded as the loan of guys to rain on a parade.

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The financial crisis has changed any cela.Avec investors now wary of stocks and experts in market research daily signs, the sky is falling, Bernstein said that wisdom is wrong, once more. The economy is stronger as realize you, says .and human who shunned the stock markets is out to people, it is an ideal time to buy stocks of small business.

"The common theme today is the United States cue," he says. " But the economy is in better shape than people think.?

If you accept Bernstein, you may want to follow in small companies that have good air markets compared to their peers, an appeal to investors group "small-cap value." they are more likely to trounce other investments if the economy restores her foot and also more susceptible to failure of récession.Si you think that the poor economy-, you would be in the company of his old friend former U.S. head of Merrill Lynch Economist David Rosenberg.

It is that very recently that these two analysts eminent exited investment ways in their views on the economy. During their many years together at Merrill Lynch, Rosenberg and Bernstein were strongly skeptical about stocks and housing booms.

"We were joined at the hip," says Rosenberg, who is now Chief Economist at Gluskin Sheff in Toronto. Both left Merrill Lynch shortly after Bank of America Corporation.It was in 2009.

Rosenberg, who remains reliable dark, is willing to turn positive on the economy, that time is droite.Avec his friend and former colleague Bernstein now bullish on the economy us, "I'm real standing bear of Wall Street," he deadpans.

Unlike the while he was the Chief Strategist at Merrill, Bernstein has money to put behind the anti-conformist view.Multi-market equity strategy Fund Richard Bernstein was launched on October 12, with support from Eaton Vance.Il asset management company viewed as a 'macro' fleet funds means that all decisions overall vision investment Bernstein spring world. Stocks are collected based on how well they fit into the picture.

Billing of the Fund said it will target "neglected areas in the global capital markets."This is no task easy, as investors have spent the past two years pulling cash of the US stock market and labour for a long time in areas considered as difficult as junk bonds and emerging markets.

A recent Conference, a financial planner called Bernstein: forgot today? answer, he said, is right under your nose: American small business, specifically those undervalued stocks.

Bernstein, says investors have unwillingness them because their fate is closely tied to the cycle économique.La most people are not convinced that the economy has recovered his foot, which is why small businesses have found harder to get loans from banks or raise capital from investors.

Bernstein tells people that they should learn a lesson from organised crime which has experienced success by providing money to those who could not get it to the banks.

"They lend to where capital is scarce," he explains."As an investor, is how you penser.De obviously, when it comes to collect your money is another story."

Bernstein funds has not yet its assets in detail with regulators, so it cannot nominate companies that it owns.However, you can see how it compares with the benchmark MSCI World Index, followed stock market countries.

This index is 14 percent of its assets in emerging markets, but Bernstein Fund owns only 1 percent.Small stocks are 1 percent of the index, but by 26 percent of Bernstein, funds at the end of October also.

If WINS viewpoint Bernstein of the economy, performance data and studies suggest performs droite.Katie Rushkewicz, an analyst at Morningstar Fund Paris, says small businesses tend to beat the other companies in the long term.

Mutual funds that target undervalued small businesses are returned by an average of 10% every year since 1995 and 8.96% since 2000, beating all other classes of equity, according to Morningstar.

Rosenberg, former colleague of Bernstein at Merrill, believes that the economy is a also longue.Au during the depth of the financial crisis, he wrote a report claiming that the Americans would spend next years repairing their personal finance registration and prune their debts.

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The report proved remarkably lucid overview of what was most venir.Près two years later, he still sees a lot of single problèmes.La reason that the unemployment rate is not higher than the percentage of 9.6 current, said, is because many people have given up trying to find a job.

To the United States owners did not recovered bubble real estate soit.Dans past, Americans belonging to a larger home participation they had their hypothèques.Que relationship reversed in 2007 and remains so, Rosenberg explique.Les owners have now 10.5 billion dollars in residential mortgages and only 7 trillion dollars in capital.

Rosenberg, asked him what he thought of optimistic turn Bernstein, says: "I love him like a brother and I started a fund I could say the same thing."

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