Bill Miller Knows Himself

Know Thyself.

One of the most important aphorisms of the Oracle of Delphi. Carved into the entrance of the Temple of Apollo. Attributed to at least five ancient sages.

In the context of the markets, either you believe in the Fed or you don't. You either believe that the Fed can make the market do what it wants, or you don't.

But you'd better know.

Legg Mason Inc.’s Bill Miller just said U.S. stocks may rise 15 percent in the next 12 months as the Fed continues efforts to boost asset prices and the economy.

Bill Miller knows himself.

“The Fed wants the stock market to go up, and they will do what’s necessary to get it to whatever level it takes for the wealth effect of higher stock prices to stimulate growth,” Miller wrote in a letter to shareholders released today.

I had to read it again.

“The Fed wants the stock market to go up, and they will do what’s necessary to get it to whatever level it takes . . ."

Bill Miller is a believer. I wish him and his shareholders well.

Quite simply, either the Fed will make the market do what it wants, or it won't. Believe what you will.

Know Thyself.