Wednesday, November 16, 2016

Bearish Gurus Go Silent as The Bulls Take Over

News
Ever wonder why the public, a group that likes to follow gurus rather than the message of the market, is consistently a bagholder of trend transitions? Numerous gurus were screaming "sell stocks ahead of the big crash" only a couple of months ago (see Review of Dividend Yields); they cited everything from growing risk of an uncertain election to stretched fundamentals. As the bears go silent (as expected), a new crop of gurus are calling for a banner year for stocks in 2017.

One thing is certain, when the gurus are all singing the same bullish or bearish message, it's best to run in the opposite direction.

Headline: Why 2017 is forecast to be a banner year for stocks

Wall Street’s top stock market strategists are telling clients that the S&P 500 (^GSPC) will reach new all-time highs in 2017, fueled by accelerating earnings growth.

“We predict adjusted earnings per share for the S&P 500 will grow 7% in 2017 to $127,” Barclays’ Jonathan Glionna said on Tuesday. “This would be the strongest EPS growth since 2014.”


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