Barton Biggs Says Stock Market Set to ‘Pop’ in Days

U.S. stock markets are oversold and may rally strongly over the next few days, said investor Barton Biggs.

“I think they’re going to stabilize in this general area, and then we’re going to have a significant move to the upside,” Biggs, who runs New York-based hedge fund Traxis Partners LP and whose flagship fund returned three times the industry average last year, said in a Bloomberg Television interview.

The Standard & Poor’s 500 Index is down 10 percent in May, poised for its worst month since February 2009, as credit- ratings downgrades of Greece, Portugal and Spain added to concern some European nations will struggle to fund deficits.

“The market is very, very oversold, and I think we’re going to have a big pop to the upside some time in the next couple of days,” said Biggs. “I wouldn’t be surprised to see us go to a new recovery high, just to make everybody squirm.” (more)