Salient to Investors:
Larry Fink at BlackRock says investors should be heavily invested in equities due to its fair value at a 15.5 P/E ratio for the S&P 500 and good earnings season.
Jeffrey Gundlach at DoubleLine said in mid-April that he expects a catastrophic failure because the developed world since 2005 has been living on a debt-financed economic upturn that is unsustainable and which cannot be paid back. Gundlach started buying 10-yr T-notes in February.
Josh Brown said half the market has not kept up with the major averages so now is a great time to be selective.
Ken Heebner at Capital Growth Mgmt said US growth will get stronger because of the positive impact of rising house prices which could push stock prices up 50 percent in 2 or 3 years.
Byron Wein at Blackstone in March said the market is beginning to verge on the euphoric, outstripping so-so economic data, and eventually the fundamentals, including Washington and earnings disappointments, will take over and the market will become a more reasonable place.
Gregory Harmon at Dragonfly Capital Mgmt says a simple Harmonic pattern shows that a reasonable target on the Dow is 16,810 and 20,770 is possible.
Doug Kass at Seabreeze says this is a solely Fed-driven rally, and earnings continues to be challenging but the market hasn’t cared because global monetary policy is dominating the revenue and earnings lethargy. Kass said we are in a P/E driven market, which are always far more difficult to predict than earnings driven markets.
Bob Doll says the path of least resistance is higher, with ideal conditions in an economy operating on only 5 or 6 out of 8 cylinders which keeps a lid on interest rates. Doll said other assets offer little return so if the weak fundamentals remain intact, any correction will only be a few percent.
Laszlo Birinyi is bullish and expects the S&P 500 going to 1900 in a series of steps.
Warren Buffett said we will see markets far higher in our lifetimes, fueled by the retention of earnings by American industry, and US growth.
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