Real Rally or Real Folly? Buy Side's on Both Sides of This Fence

Is it for real?

The past few days have featured the first extended broad-based rally since mid-January that hasn't been quickly cannibalized by aggressive short-selling and renewed panic. A smattering of economic releases have recently displayed a bit more strength in demand than was originally thought -- and this morning Goldman Sachs' Abby Joseph Cohen gave the market a bit of lift by increasing her equity allocation.

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For investors, it's hard not to be cautious, given the slow, steady slide the market's endured since last March, and the near-daily pronouncements during the past three months that today (everyone now!) "had to be the bottom" of the market. That said, a number of value managers expressed the belief that this has become a strong buying opportunity if the intent is to hold stocks for the long term. Technology valuations, in particular, are again looking attractive.

It's a view the broader market has embraced in recent days, but of course, many money managers are waiting to see if the current rally truly has legs. The market is operating in a bit of a dead news period, having stumbled through fourth-quarter earnings and awaiting the Federal Reserve's March 20 meeting and the upcoming first-quarter preannouncement season. ...