According to Knight Capital managing director Peter Kenny, concerns over Q4 earnings are wildly overdone. Not only that, he sees stocks moving up to 5% higher from here until the next round of debt ceiling debates start kicking in next month.
Kenny says Q4 earnings will not be as “ugly as many people are projecting.” Given that some of those people are corporate CEOs, the burden of proof for supporting this statement falls to Kenny. His bullish thesis stems from the following:
- The U.S. hit an earnings trough in the middle or back end of 2012
- GDP estimates for 2013 are strong
- There’s still money on the sidelines waiting to be poured into stocks either on dips or to chase stocks higher if that dip never happens
The FalconStocks Founders
Excerpt: While the financial markets hang on Warren Buffett’s every word and traders and arbitrage players follow Carl Icahn religiously, there is one super-investor that is relatively unknown. It is quite astonishing how little known this stock picking guru is considering his most impressive track record over the past dozen years. Our mild mannered and all but invisible investing superhero is Kevin Douglas. Stealthily flying under everyone’s radar, he has garnered one of the most impressive stock picking track records, placing him at the top of our list of gurus to follow.
See what he’s buying and the stocks he’s bought and seen rocket higher in the past.
Continue to the article on SeekingAlpha
Hope springs eternal among most stock strategists and Jeremy Zirin, chief equity strategist at UBS Wealth Management, is no exception. Zirin expects moderate gains in stocks this year and says the market will “continue to grind higher as the economy starts to improve.”
There are increasing signs that the economy is improving. The four-week moving average for initial unemployment claims has fallen to its lowest level since March 2008 and the housing market continues to gain momentum. Home prices and new home sales recently posted their biggest gains in 2.5 years and builder confidence has risen to its highest level in more than 6.5 years.
Zirin forecasts GDP growth of 2% to 2.5% this year. Growth will accelerate as Washington adopts new fiscal policies, says Zirin.