Tom Lee: 9 month rally "is the start of a new bull market"

In our view, the stock market bottomed October 12, 2022, and the rise over the past nine months is the start of a new bull market.  We have had a huge decline in inflation, and the inflation war is the war the Fed is waging and seemingly winning.

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If inflation is cooling, and therefore people become more confident that two rate hikes are the most, or maybe there’s not even two hikes, then I think it’s going to ease financial conditions, so interest rates and bond-market volatility should be diminishing

~ Tom Lee, "He called the 2023 stock-market rally. Here’s what Wall Street’s biggest bull sees for the second half.," MarketWatch, July 6, 2023

Barry Bannister raises his target on the S&P 500 to 4,400

We are raising our target price for the S&P 500 by 5% from our 4,200 prior midpoint view to 4,400 by 2Q/3Q 2023.  There are encouraging signs of economic resilience in mid-2023, which is good for Cyclicals rather than Defensives.

~ Barry Bannister, chief equity strategist at Stifel, "S&P 500 could rise as high as 4,400 in coming months, says Wall Street strategist who called 2023’s rebound," MarketWatch.com, May 8, 2023

Mike Bell sees economic recovery in 2024

You will see a recession in all major economies this year, but the market spent 2022 pricing that in and will spend this year looking ahead to an economic recovery in 2024.

~ Mike Bell, global markets strategist at JP Morgan Asset Management, January 6, 2023

(As quoted by "How ETF Investors Are Playing ‘the Most Anticipated Recession of All Time’," ETF.com, February 06, 2023)

Dan Skelly: "We still don't see an economic contraction"

The first part of the bear was this inflation and rates and derating in the [P/E] multiple.  And we've seen that play out.  Multiples in the S&P are off 20% or so year-to-date.  The second part of it, in our view, is the earnings hit.  And so we have seen, obviously, blowups in some of those most acutely sensitive to over-earning in the Covid period - so the retailers of the world who over-ordered inventory and maybe have a little bit of skew to that lower-end income scale who's getting particularly impacted by food and gas today.  So we've seen that.  We think that that basically broadens out a bit more to some other parts of the market.  That being said, we see this being limited to a multiple and earnings hit.  So, yes, there's probably a volatile summer ahead of us, but we still don't see an economic contraction.  And with that, you're probably going to be limited to 5, 10% further downside [in the stock market.]

~ Dan Skelly, head of market research & strategy, Morgan Stanley Wealth Management, Bloomberg TV interview, June 10, 2022

Goldman Sachs strategist ready to buy the dip on Omicron variant scare

We think a broad risk recovery may be impeded in the near term by the need to digest the prospect of a more hawkish Fed and a less consistent cyclical tailwind.  Ironically, the Omicron scare itself may now create the best possibilities for relief in the coming weeks, either because incoming news is better than feared or because it prompts monetary policymakers to take a more cautious stance toward tightening.

~ Dominic Wilson, Goldman Sachs strategist, client note, November 29, 2021

Keith Lerner: "the economy is on solid footing and that equities look attractive"

The short-term noise we’re dealing with does not change the fact that we think the economy is on solid footing and that equities still look attractive relative to other assets.  We still think the primary market trend over the next 12 months is higher.

~ Keith Lerner, co-chief investment officer at Truist Advisory Services, "U.S. Stock-Market Tumble Hasn’t Quelled Optimism," The Wall Street Journal, September 21, 2021

Tony Despirito on the strongest economic recovery "literally in a generation"

Q: Are we adequately pricing in how big the economic surge will be in the United States?

A: It's going to be big.  We're living in an unprecedented economy.  That was true on the downside and it's going to be true on the upside.  This is going to be a recovery like something we haven't seen literally in a generation.

~ Tony Despirito, BlackRock CIO, U.S. Fundamental Equities, "BlackRock's Despirito Sees 'Blowout' U.S. GDP Rebound," Bloomberg TV, April 7, 2021

David Kelly on the death of budget deficit hawks

The species has died. The 2017 Tax Act proved that you couldn't call the Republicans exactly deficit hawks. And I certainly don't think you could characterize [House Speaker] Nancy Pelosi as a deficit hawk.

~ David Kelly, chief global strategist, J.P. Morgan Asset Management, October 23, 2020

(As quoted in Streetwise section of Barron's on October 24, 2020)

Mike Wilson on money supply growth on the risk of inflation

It’s fair to say we have never observed money supply growth as high as it is today. The Fed may not be in control of Money Supply growth which means they won’t have control of inflation either, if it gets going.

~ Mike Wilson, Morgan Stanley chief U.S. equity strategist, "The ballooning money supply may be the key to unlocking inflation in the U.S.," CNBC.com, August 5, 2020

Morgan Stanley strategist Michael Wilson: "It's early in a new economic cycle and bull market"

We maintain our positive view for U.S. equity markets because it’s early in a new economic cycle and bull market. Last week’s correction was overdue and likely has another 5-7% downside. It’s healthy and we are buyers into weakness with a small/mid-cap and cyclical tilt.

~ Michael Wilson, Morgan Stanley equity strategist, "Stocks could fall a further 7% after last week’s correction. But here’s why Morgan Stanley says that’s 'healthy,'" MarketWatch.com, June 15, 2020

BlackRock strategist: bonds act as a shock absorber (2019)

Even with low yields, bonds play a really important role in providing a cushion against shocks in other parts of the market.

~ Mike Pyle, global chief investment strategist, BlackRock Investment Instiute, as quoted in Barron's, "The Trend Isn't a Friend: Bond funds are hot, but the yield-hungry should be wary," August 3, 2019

Marko Kolanovic sees 3,000 on the S&P 500 soon

If earnings season is not a complete disaster, I think markets will go higher and we could actually see our price target [of 3,000 on the S&P 500] being achieved earlier, maybe even sometime in May or June.

~ Marko Kolanovic, J.P. Morgan’s global head of quantitative and derivatives strategy, as appeared on CNBC, April 3, 2019

(The S&P 500 closed at 2873.)

Thomas Lee sees plenty of "dry powder" on the sidelines

Retail investors have been selling stocks and buying bonds so far in 2019. And hedge fund net long positions are among the lowest levels in 5 years. Hence, only the long only funds are fully exposed to equities. With so much on the sidelines, markets near highs, and with manager underperformance, we see this dry powder as a key dynamic.

~ Thomas Lee, Fundstrat Global Advisors, from research note, May 6, 2019

Credit Suisse strategist: "we have an economy that is healthy and creating a ton of jobs"

We think stocks are going to continue to deliver over the next several years — high single digits or better returns... The real key here is that we have an economy that is healthy and creating a ton of jobs... I think the feeling among investors is anything that causes any near-term pain is inherently bad, but it’s very possible that as a result of this [trade war] we’d end up with more open access to Chinese markets in the long run, and a better situation for intellectual rights. And if those are the outcomes, then yes, this will increase volatility for a period of time, but it’s possible the results here are positive ones.

I think all the people who are waiting to buy on a dip this year, a lot of them waited too long. The market is very attractively valued, and the economy is in good shape and corporate profits were fine.

~ Jonathan Golub, chief U.S. equity strategist, Credit Suisse, "One of Wall Street’s biggest bulls is looking well past the trade drama," MarketWatch.com, May 7, 2019

JPMorgan strategist on the business cycle "no longer even relevant" (2019)

We are all used to using the word ‘cycle’; we’re all used to looking at historical charts and graphs and equations and relationships. The reality is that maybe the word ‘cycle’ is no longer even relevant, given that we have so much unconventional central-bank involvement.

~ Dubravko Lakos-Bujas, J.P. Morgan chief U.S. equity strategist, “There’s No Expiration Date on This Bull Market,” Barron’s, April 8, 2019

Richard Bernstein lists three reasons why it's not a bear market (2018)

If one were to solely look at fundamentals, it would be very difficult to say that we're on the precipice of an all-out bear market.  Earnings in the United States are still accelerating, liquidity is still ample - although some had dried up, I will readily admit, but still ample - and it's hard to argue that investors are overly bullish.

~ Richard Bernstein, as appeared on CNBC, December 9, 2018

Strategist Tom Lee sees the bull market resuming and possibly lasting decades (2018)

We believe the selloff is behind us, [and the bull market] could last to 2035... That’s going to coincide with millennials peaking.

~ Tom Lee, Fundstrat Global Advisors, "Market strategist urges aggressive buying, says bull market could last decades," MarketWatch.com, November 1, 2018

Market strategist on recent 10% correction: "It isn't the beginning of the end" (2018)

It isn't the beginning of the end, but a normal correction in a long upward move.

~ Chris Gaffney, president of world markets, EverBank

Josh Brown dismisses CBNC survey where 87% of strategists expect higher stock prices in Q4

It's too easy just to fade optimism all the time.

~ Josh Brown, CNBC's Fast Money, September 29, 2017

(In response to CNBC poll of Wall Street strategists in which 87% expect higher stock prices in Q4.  Brown dismissed a contrarian interpretation of this one-sided view as a "knee-jerk reaction.")

PaineWebber strategist justifies high tech stock valuations

A very fast growth rate is worth a very high price-earnings multiple.  In a low inflation environment, [a stock growing at 15% a year] is worth a P/E of 65.  And a 20% growth stock is worth a P/E of 106.

~ Edward Kerschner, investment strategist, PaineWebber, as quoted in The Wall Street Journal, June 2, 2000

(Kershner was defending the high valuations of large cap tech stocks like Cisco Systems, America Online, Hewlett-Packard and Microsoft at the top of the 2000 tech bubble.)