The biggest losses in equity and credit markets in five years are making the U.S. stock bulls more bullish.
The Dow Jones Industrial Average posted its steepest gain since 2003 on July 12, two days after tumbling on Standard & Poor's plan to cut credit ratings for bonds backed by subprime mortgages. The benchmark for America's biggest companies climbed to a record the next week, following a decline sparked by losses in Bear Stearns Cos. hedge funds. Some of the world's largest investors say the S&P 500's biggest slump since September 2002 last week now offers them even more opportunities to profit.
``You look at earnings, you look at ongoing takeovers, and I'm happy to increase holdings as valuations improve,'' said Andy Brough, who helps oversee $7.6 billion at London-based Schroder Investment Management Ltd. ``You make money buying shares when markets are falling, and that is what I've been doing.''
