Monday, November 16, 2020

They're Reading The Blog -- November 16, 2020

From Yahoo!Finance today:

Morgan Stanley equity strategists are raising their S&P 500 forecast for next year, predicting earnings growth as the key force pushing equity prices higher.

“We extend our S&P 500 price target horizon to December 2021, and raise our base case estimate to 3,900 from 3,350,” wrote equity strategist Michael J. Wilson.

His team sees “a return to pre-Covid-19 levels of GDP by 2021 and returns to well above prior peak through 2022.”

On November 9, 2020, I wrote on the blog:
Market: the Dow was up a thousand points today -- rounding, of course. I haven't looked at the market in weeks (months?) and I haven't followed any news for similar length of time. I would not have known about the massive move had a reader not sent me a note. Wow. I don't have a dog in that fight any more: I don't follow the market and I'm not watching the news. The reader said it was due to good news, Pfizer and "the vaccine." In fact, I listened to that report while driving from Tucson, AZ, to Dallas, TX, yesterday. Excuse me but that was the most bland report I've ever heard. Much could be said, but it wasn't the "vaccine" news (actually non-news) that drove the market. I don't have a dog in this fight any more, but there's more to this than the Pfizer report. If my hunch is correct, we will see another 2,000 points on the upside in the Dow over the next couple of months. 

Using the 10:1 // Dow // S&P 500 rule: the new MS estimates easily exceed another 2,000 points on the Dow.

And no inflation in sight. 

Just a lot of debt. Which, apparently, no longer matters.

Good luck to all.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

No comments:

Post a Comment