i understand inflation, but i always thought a Bull market meant people bought more stock not simply an inflated stock price and i can't see why people will buy stock in a company that isn't selling product...
Posted on 08/07/2012 3:02:11 PM PDT by blam
Top Wall Street Strategist: 'We're On The Verge Of The Next Great Bull Market'
Mamta Badkar
Aug. 7, 2012, 5:19 PM
In an interview with Bloomberg TV however, BMO's Brian Belski says that despite the lack of investor confidence, stocks are set to do well.
He also said investors in the past decade have focused too much on macro as opposed to stock fundamentals:
"What we have here to quote Cool Hand Luke is "a failure to communicate". Investors clearly have confidence issues this year and that's why you've seen these sharp moves to the upside and the downside. We continue to think we're on the verge of the next great bull market.
...I'm not trying to price myself out of a job but in the last 10 - 12 years we in the investment world have become so macro dominated we've forgotten that really fundamentals define stocks. We live by one very simple premise that stocks lead earnings, which lead the economy. "
In a note to clients, Belski along with BMO strategists Nicholas Roccanova and Mira Borisova point out that "S&P500 earnings are not U.S. GDP". They write that earnings growth is more sensitive to emerging market growth anyway so it could weather a slowdown in the U.S.. They also say historical precedence shows that stock market performance has been strong even when earnings growth has deteriorated.
In fact, continuing on his vein of stock leading earnings, which lead the economy, Belski says:
"We think the stock market revival we've seen in the last several weeks is foreshadowing what's going to happen in the economy again …meaning a recovery in the second half."
Bottom line: While higher earnings growth have led to higher stock prices, it doesn't mean that weakening earnings growth
(snip)
(Excerpt) Read more at businessinsider.com ...
There are too many dollars chasing too few stocks. It is structurally bidding up stock prices way beyond their fundamentals — witness the crazy PE values.
The smart money is in private equity and hedge funds (if you have a million dollars to buy in), taking publicly held companies out of the stock market and going private.
NYSE and NASDAQ have small investors chasing too few public stocks, coupled with wild govt deficit spending driving up equities even more as people dump their dollars.
Thanks to SarbOx the public equity markets are being chased out. We’re going back to the 19th century model of capitalism, where a small number of billionaire magnates own private equity funds that own everything.
This is because of Romney.
As his numbers improve, investors and markets gain confidence.
This is because of Romney.
As his numbers improve, investors and markets gain confidence.
Yep, as the bulls charge over the edge of the bottomless pit.
Let’m rip!
i understand inflation, but i always thought a Bull market meant people bought more stock not simply an inflated stock price and i can't see why people will buy stock in a company that isn't selling product...
It provides plenty of opportunity for developing insight for our potential future.
Or they believe stories like this one.
Who knows why some people do what they do...
I’m having trouble predicting now, too many mixed signals.
But I bet few of the commenters here were bullish in March of 2009 either.
ain't THAT the truth...
Why not? Can't dance and voting is going to suck more than a Hoover with a Hemi.
The next great boom is just one economic collapse, one world war and a few dozen nuked cities away. We’re almost there! :)
I hear you Blam. The only sure thing about markets and gambling, is that there is no sure thing.
Now I come about as close to a sure thing as there could be thought. You see, every time I invest, I lose.
I finally started feeling sorry for the other folks who might be investing, and decided to cut them some slack, and quit jinxing the investments.
Funny thing, nobody appreciated it enough to give me some remuneration.
Oh well, some things are their own reward. ;^)
Only half kidding...
1. CD's at 1%- Nope
2. Bonds par priced at at time highs and low yields- Nope
3. Gold at $1600/oz- Nope
4. Real estate baloon still bursting and wooshing out- Nope
It's a bull market out of necessity of having find somewhere to put money. Nothing more.
I think that’s a fair comment. Of course there were folks who had very high hopes. He didn’t pay their rent and utilities though, so they were very disappointed.
For rational people, you’ve pretty well hit the mark.
The market can never come back because as the boomers age out they will be drawing down on their 401k. The generation that follows is incrementally poorer. There is no money coming in behind the boomer money into the stock market. Both real estate and the stock market are STILL in a bubble.
She is a major Obama rumpswab, based on her many TBI postings
Every expert I hear, I like to know whether or not they called the crash of 2008. Did this guy call the crash of ‘08?
My first thought EXACTLY.
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