Bob Doll Says Bull Market is Likely to Continue

Nuveen’s chief equity strategist Bob Doll says the global stock market should continue to rise despite risks, according to his recent Barron’s article. Doll argues that investor confidence has increased with respect to corporate earnings and the global economy and that, although volatility may rise, equities should outperform bonds and cash in the year ahead. Inflation, he says, remains “well contained in most major markets outside of the United Kingdom,” and that investors are banking on further rate increases in the face of continued growth and moderate inflation. While the recent string of natural disasters is likely to negatively impact […]

Investing Legend Birinyi Remains Bullish on Stocks

As the stock market continues to climb and some investors think about pulling back, Laszlo Birinyi is “going in the opposite direction, placing more bullish trades on the S&P 500,” according to a recent article in Business Insider. The investing legend, the article says, argues that “ample cash remains on the sidelines, waiting to be deployed,” adding that “as stocks continue to show strong fundamentals, such as earnings growth, traders will continue to find excuses to put that cash to work.” The article asserts that Birinyi’s excellent track record makes heeding his advice a good idea for investors. “After all,” […]

Data that May Support Continued Bull Run

A recent article in Bloomberg outlines the viewpoints of a group of strategists and investors (with supporting data graphs) regarding to what degree the current bull run may have staying power. Here are a few: George Pearkes, of Bespoke Investment Group shares concern for the “decline in, and volatility of, spreads on securitized debt,” using the example of auto asset-backed securities today versus before the financial crisis. Before the crisis, he says, they traded in a tight range compared to Treasuries, but since that time have been “a very different animal, oscillating in a wider range and responding to changes […]

Shiller Says Bull Could Run for a While

When asked for his outlook on the market in a recent CNBC interview, Nobel Laureate Robert Shiller says investors should keep some stocks in their portfolio because the market “could go up 50 percent from here.” The economist, who helped develop the cyclically-adjusted price-to-earnings ratio (CAPE) market valuation measure, says that although the current CAPE (29) is above the 17-year historical average, he isn’t calling for a market decline. That said, he notes that diversification outside the U.S. would avail investors of lower valuations. “You can go practically anywhere else in the world and it’s lower,” he argues. The CAPE […]

The “Raging Bull” Could Be Running Out of Steam

The mood surrounding today’s stock market seems to be rife with contradiction, according to an article in yesterday’s Fortune. “At today’s elevated prices,” it argues, “the market math contradicts Wall Street’s sunny outlook.” The article cites a recent interview with Goldman Sachs’ chief global equities strategist Peter Oppenheim that supports the thesis. While Oppenheim argued that the Trump effect has “overpriced the ability of the administration to push through some of the things the market is priced for,” he tempered his comments by adding that any correction would be temporary—that the bull would keep running. Three possible market scenarios are […]