Salient to Investors:
Margie Patel at Wells Capital Mgmt says the market will rise over the balance of the year because the fundamentals are so good – any correction will be mild and either now or in the summer.
Charles Evans at FRB of Chicago sees self-sustaining growth at escape velocity in 2014.
Richard Fisher at FRB of Dallas said the odds favor reducing Fed stimulus and would have started at the last FOMC meeting.
Larry Peruzzi at Cabrera Capital Markets said even a moderate cautious comment will be met with selling because investors are looking for a reason to take profits.
Bloomberg and Goldman Sachs report that S&P 500 companies with the lowest working capital, smallest earnings and highest debt ratios are rallying more relatively than any time in almost 4 years – up 27 percent in 2013 or almost double the gains for companies with the most cash and least borrowing.
The S&P 500 has rallied 127 days without a 5 percent or more drop – the longest such rally since a 173-day stretch ended Feb. 20, 2007, 8 months prior to the market plunging 57 percent.
E. William Stone at PNC Wealth Mgmt said the market has defied all the skeptics and it’s hard to be the one to bet on the pullback coming tomorrow.
The VIX moves in the opposite direction to the S&P 500 about 80 percent of the time, and has slipped 29 percent in 2013.
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