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Bulls About to Come Back with a Vengeance?

With the first half of the year winding down amid so much uncertainty, will bulls or bears prevail during the second half?

According to CNBC Contributor Rich Bernstein, of Rich Bernstein Advisors look for the bulls to come back with a vengeance.

That’s largely because the former top Merrill Lynch strategist expects money to rotate into the S&P 500 as investors come to understand the strength domestically.

”We have the steepest yield curve in the world right now. We’re leading the world in positive earnings surprises and more importantly positive revenue surprises.”

Ironically, the reason the trend may be so bullish is because investors don’t see it that way - yet.

”I don’t think investors realize this yet. If you look at retail flows we see investors buying into the emerging markets,” he says.

"It's a total disconnect," he adds. “If you think where the sentiment is, investors love the emerging markets and hates the United States."

But.. when investors come to realize the catalysts mentioned above, Bernstein expects money to flow out of emerging markets – making them a potentially terrible investment.

”EM is leading the world with negative surprises and their yield curves are starting to invert. Inverted yield curves are the kiss of death."




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Trader disclosure: On June 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour owns (BAC); Tim Seymour owns (AAPL); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Adami owns (INTC); Terranova Owns (VRTS); Terranova Owns (IBM); Terranova Owns (FCX); Terranova Owns (CVI); Terranova Owns (F); Terranova Owns (AAPL); Terranova Owns (CAT); Terranova Owns (BX); Terranova Owns (HPQ); Terranova Owns (MA); Terranova Owns (PEP); Terranova Owns (MCD); Terranova Owns (JWN); Terranova Owns (TM); Terranova Owns (LULU); Terranova Owns (WFM); Terranova Owns (DAR); Terranova Owns (BJ); Terranova Owns (HAS); Terrnaova owns (DIS); Terranova Owns (XOM); Terranova Is Short (DELL); Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman owns (BAC); Finerman's Firm Owns (JPM) Leap, Finerman owns (JPM); Finerman's Firm owns (CMI), Finnerman is short (CMI); Finerman's firm owns (CAT) calls; Finerman's Firm Is Short (SPY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Weiss owns (TWM); Weiss owns (DE); Weiss owns (CMA); Weiss owns (KEY); Weiss owns (QCOM); Weiss owns (NAV); Weiss owns (EMC); Weiss owns (MSFT); Weiss owns (HK); Weiss owns (COP); Weiss owns (AKAM); Weiss owns (ETP); Weiss owns (NS); Weiss owns (VZ)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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Nick Pope
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Tony Crescenzi
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