Legg Mason's Bill Miller looks at QE2 and sees 15% gains for stocks over the next year: "The Fed wants the stock market to go up, and they will do what’s necessary" to pump equities and get the "wealth effect" of stock prices to stimulate growth.
The small-cap Russell 2000 index is up nearly 20% since the end of August amid some signs of serious improvement in small-business fortunes. With access to credit eased, a pickup in jobs is appearing in some areas and recovery "could be pretty dramatic for stocks."