Grantham on Why the S&P Melt-Up to 3,600 Didn’t Happen

In a memo in January of this year, GMO founder Jeremy Grantham suggested to clients that they “brace themselves for a near-term melt-up in stock prices that might take the S&P 500 to the 3,600 area,” according to an article in Financial Advisor. Citing a research paper published by Harvard University entitled, “Bubbles for Fama,” Grantham highlighted price acceleration as a strong indicator of bubble activity. For the three weeks following his memo, the article says,… Read More

Jeremy Siegel Says Stock Market Slips are not Cause for Panic

In a podcast  on the Knowledge@Wharton radio show, finance professor Jeremy Siegel shared insights on the markets and the key drivers for change in sentiment. On a macro level, Siegel recommended that long-term investors “not panic at the stock market’s recent dips,” and predicted that equities would be “either flat or up by as much as 10% for all of 2018.” Here are some highlights: Siegel sees recent corrections as normal, adding, “I thought the… Read More

Gundlach’s Market Outlook

According to Jeffrey Gundlach, although the S&P 500 will post a negative return in 2018, there is no recession in the offing. This according to a recent Barron’s article highlighting takeaways from the DoubleLine CEO’s presentation at the Barron’s Top Advisor conference earlier this month. The article provides charts from Gundlach’s presentation that reflect the following: Central banks are scaling back their bond purchases, and net purchases by both the Fed and the ECB are… Read More

Cooperman Says Bear Market Is Not Imminent

On CNBC’s Halftime Report last week, Omega Advisors CEO Leon Cooperman shared his views on the market and its direction. “The market’s not cheap,” Cooperman said, “but it’s not expensive…it’s approaching normalization.” He shared that his fair value is approximately 17 times forward earnings and that, if President Trump can get tax reform through Congress, he forecasts $150 in S&P 500 earnings per share in 2018. Cooperman argued that “we have another 10 to 15… Read More

Gundlach Says Now is the Time for Caution

In a phone interview with Bloomberg earlier this month, Jeffrey Gundlach said, “This is not the time period where you say, ‘I can buy anything and not worry about the risk of it’ The time to do that was 18 months ago.” The DoubleLine Capital LP co-founder and CEO, the article says, “sees too much of a good thing—and he wants no part of it.” He views risky assets such as junk bonds and emerging-market… Read More

Jeremy Siegel is Bullish on Stocks

Wharton finance professor Jeremy Siegel remains bullish notwithstanding others’ concerns regarding “the market’s potential reliance on Trump’s tax- and regulation-cutting agenda,” according to a recent CNBC interview. “What has driven the market further up has been the great earnings season that we had in the first quarter,” says Siegel, adding, “It was the best guidance, forward guidance, that I had heard in many, many years.” This, along with global growth, greater stability in China, a… Read More

Tepper Likes the Market’s Economic Backdrop

In a recent CNBC interview, Appaloosa’s David Tepper said that while stocks are not “really cheap,’” current economic conditions provide a solid backbone for the market. “Listen,” Tepper argued, “it’s hard to go short when you still have the drugs being given.” The hedge fund manager emphasized the importance of reduced regulation, a “cornerstone of President Trump’s platform.” On the other hand, he argued, the new administration’s stance on immigration is “dangerous.” Regarding interest rates,… Read More

The “Wizard of Wharton” Looks Ahead

In a recent interview with ThinkAdvisor, finance professor (and senior investment strategy advisor to Wisdom Tree Investments)  Jeremy Siegel shares his view on a host of issues affecting current market conditions: Presidential election: The stock market would be “a little more comfortable with a Clinton victory, but they don’t love her at all.” With regard to a Trump win, “In the short run, there would be some negatives. But in the long run, I don’t… Read More