Stocks have started 2018 strongly and many analysts see the bull run continuing.
Stephen Suttmeier, chief equity technical strategist at Bank of America, told CNBC last week that there is a strong technical case for a rally through 2018.
Canaccord's chief market strategist Tony Dwyer told CNBC that while a correction may be coming in the near term, a flattening yield curve is “actually a monster buy signal”.
“The thing in this environment is: There are no negative divergences. The advance-decline line is making new highs. It's a pretty broad move,” he said.
Walter Todd, Greenwood Capital chief investment officer, told Bloomberg: “The fundamentals for the rally are strong, though the higher it goes, the higher the risk of a correction, and the higher the risk that the correction will be steep.”
According to Bloomberg, the S&P 500 trades at 3.4 times book value, the most expensive level since 2002.
However, it also noted that an expected 10.2 percent growth in corporate earnings in the fourth quarter and 15 percent growth in 2018 may support the valuation.
No comments:
Post a Comment