What Investment Strategists Are Saying


Commenting on the U.S. stock market:

“Edward Yardeni, chief investment strategist at Yardeni Research, says his biggest fear is “that we have nothing to fear but the notion that there is nothing to fear.” A continued market “melt-up,” Yardeni says, would make him more “worried about a market meltdown.”” http://www.pnj.com/usatoday/article/3307177

“A stock market flashing its strongest breadth readings in 10 years is the main reason why Chris Verrone, an analyst at Strategas Research Partners, is shrugging off talk of an overbought market and betting that the market’ s momentum will continue through year-end.” http://www.thenorthwestern.com/usatoday/article/3287109

A study by Cornerstone Macro argues that few of the conditions that normally precede a major correction are actually in place.  The two factors most prevalent at the start of every 15% correction of the past 40 years — tightening monetary policy and rising oil prices — are nowhere to be seen.   The study indicates that valuation levels have virtually no correlation to forward one-year returns. Historically there have been more, and deeper, corrections in “cheap” markets than in “expensive” ones.


Commenting on Fed policies:

“One of the ways the Fed has tried to ignite growth is to try to goose up stock prices or real estate to create a wealth effect,” said Ned Davis of Ned Davis Research. But he told clients in a recent report that he’s not sure that’s stimulated growth, and “some people argue that all the zero interest rates on cash have done is to push stocks up into bubble territory.” http://www.heraldonline.com/2013/10/29/5351352/its-trick-or-treat-for-investors.html#storylink=cpy

Commenting on metals and mining:

Ned Davis Research’s Neil Leeson and Wenbo Zhou have their eye on one of the nichiest of niche ETFs: The lithium fund.  They’re less interested for the investment merits than for what it says about the [lithium] market. Chiefly: Users of lithium have been on a tear. But producers of the commodity are tough hit, to an equal or greater degree than other mining stocks.” http://blogs.barrons.com/focusonfunds/2013/10/29/buy-the-lithium-etf-maybe-not-but-heres-what-it-says-about-the-market/?mod=BOLBlog

Commenting on the Indian stock market:

“”We are still cautious on banking stocks,” Jim Walker, founder and managing director of Asianomics told ET NOW. Walker is a Hong Kong-based independent economist and investment strategist. “Concern still remains on bad loans in the banking sector. India’s markets are going through a rough patch,” he said, adding that structural problems still remain high on India’s economy.” http://economictimes.indiatimes.com/markets/stocks/market-news/raghuram-rajan-works-his-magic-sensex-vaults-358-points/articleshow/24894856.cms

Commenting on infrastructure spending:

BCA Research noted that after the “austerity fervor” of the 2010 elections, Washington has seen a “sudden, steep drop” in building and restoring the nation’s infrastructure.



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