this is the 1st time in the past 6 years that I feel like the market may be due to correction. I may be wrong but this is what my opinion at this moment. Market try to make higher high but seemed it is struggling to do so.
Yet another headline from cnbc, found this one on yahoo finance How much more upside can you wish for with the markets up over 175%%%%%%%% in the last 6 years, and this is all without a correction. Amazing the amount of greed all this QE has brought upon the markets...... Here's what can 'slingshot' Dow toward 20K: CIO CNBC 1 hour ago With blue-chip stocks basically flat for 2015 in an extremely volatile year, the Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) is poised motor higher, Heritage Capital's Paul Schatz told CNBC on Thursday. "We've had three-month consolidation. [Investors] have digested a lot of geopolitical news. The time is now. I think the Dow breaks out to the upside. I think we see all-time highs this month. And for my work, five closes above 18,000 ... [will begin] a slingshot right to 20,000," he predicted in a " Squawk Box " interview. The Heritage Capital president and CIO makes a case of the strong dollar leading to capital coming to the United States, first in dollars, then "some Treasurys," and eventually blue-chip stocks. Schatz also sees U.S. stocks benefiting from the accommodative measures of central banks around the world, even as the Federal Reserve considers whether to start raising interest rates from their near zero levels. The Fed says one thing and does another, he argued. "Behind closed doors, they fear normalization significantly." Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, said he expects the Fed to make a 25 basis point move, "if not June, then definitely September," and then wait to see what happens. "I've been arguing all this is symbolic. There's no reason to hike rates. Inflation is very, very low," he said. "The U.S. economy seems to be really pulling away from the rest of the world. It's unambiguously good." Tom Lee, co-founder and head of research at Fundstrat Global Advisors, said he expects the Fed to begin hiking rates in late 2015 or early 2016. Against that backdrop, Lee said, "We think the S&P (^GSPC) can still produce double-digit gains [to] 2,325, by the year of the end." Such a move would represent a gain of nearly 12.5 percent from Wednesday's close of 2,068 on the S&P, which like the Dow has seen tremendous swings that have amounted to basically a flat year so far.
i stand by my prediction of sp500 at 3000 within 2 years. key is REAL interest rates which keeps falling as official rates of inflation fall also note the public is not in stocks...there is no spec bubble as of yet
3000 in 2 years... So another 50% run from here on top of the already 175%+ Yes with QE 4 QE 5 and QE 6 As long as the fed is backing up the markets new highs will always exist. Take away all those worthless dollars and the S$P would still be floating under 1000. See Without QE you would have something called fundamentals and fundamentals don't support much higher gains.....
Made a mistake with my post above. Falling inflation means higher real interest rates. but what then drives the market higher is then expectations the nominal rates will not be raised, perhaps even lowered or new rounds of qe. So yes, u r right in that qe drives the market higher, but wrong in your definition of fundamentals in that qe is a fundamental, monetary policy is a big fundamental.
What a nice liquid market we must be providing for the fed. What's this, a bag for me to hold? It's full of gold? Well sure I'll hang on to it for you Mr. Chairman!
<iframe src="http://player.theplatform.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=3000355173&size=530_298" width="530" height="298" type="application/x-shockwave-flash" allowFullScreen="true" bgcolor="#131313"></iframe> Mr. Tom Lee is back yet again on cnbc, I think he is on cnbc now once a week talking up the market, he is bullish times infinity ....here is yet another article to go with the rest of them. Hedge funds are sending markets a bullish sign: Lee Hedge funds are taking money out of the market—and that's a good sign, Fundstrat founder Tom Lee told CNBC on Tuesday. "It's bullish in the sense that markets are capable of rising while a very large player in the marketplace is de-risking, and that is going ot provide fuel later as they sort of re-risk and add buying power to the rally," he said in a "Squawk on the Street" interview. Fundstrat reported that hedge funds are pulling money out of equities based on anecdotal evidence and moves in the hedge fund tracking beta to the S&P 500, which has declined to the lowest levels in roughly six months, Lee said. Read MoreEl-Erian: Worst-case scenario may spark correction The firms are de-risking on the chance of an "idosyncratic event," such as a Greek exit from the euro zone, a deflation surprise somewhere in the world, or an incident tied to geopolitical risk, Lee explained. The belief is that such an event could cause a correction. However, Lee said he would buy into a dip because he believes Europe is prepared for a "Grexit" and its central banks are about to engage in bond buying, reducing the risk of deflation. He also said geopolitical risks never have long-lasting effects on markets. The players buying equity positions as hedge funds sell have been spurred by normalizing interest rates, falling oil prices and a recent rebound in the high-yield market, he said. "I think there's a story about capacity utilization tightening, as well. That's going to give us a better signal about U.S. fundamentals. Then we'll see the hedge funds come back into the market," he said. As for when the Federal Reserve should raise rates, Lee said confidence is fragile and the market does not have strong core inflation signals, so it is not yet time for a hike. However, he still sees monetary policy tightening, when it happens, as a bullish signal because he believes the Fed will only raise rates when it has confidence the economy is sound. That action will signal that the United States has entered a cycle of rising prices, prompting investors to buy into the market, he said. Tom DiChristopherWeb and TV producer
Forgot to almost post this, Robert Lee was back on cnbc again yesterday february 23rd repeating the same thing he has been repeating over and over....cnbc brings him on about once every 2 weeks and hopefully they will continue to bring him on when the market is collapsing as well. I would love to see his reaction when the markets are in full correction mode! I see double-digit stock gains in 2015: Tom Lee Matthew J. Belvedere | @Matt_Belvedere Monday, 23 Feb 2015 | 10:02 AM ETCNBC.com Investors don't seem to be overly optimistic about stocks, and that's a "very bullish" sign, longtime market bull Tom Lee told CNBC on Monday. The Nasdaq Composite is aiming at 5,000, a level not seen since March 2000, when the index peaked at 5,135, before beginning a multiyear slide as the dot-com bubble burst. The Dow Jones Industrial Average and the S&P 500 closed at record highs on Friday, after a third straight week of gains. (Check here for the latest on the markets.) Lee said in "Squawk Box" interview he still thinks stocks will go higher in 2015. "I think double digits sounds right from here into the end of the year." He sees the S&P at 2,325 by year end, which would represent another 10 percent from Friday's close. So far in 2015, the S&P has gained just over 2 percent. But the co-founder and head of research at Fundstrat Global Advisors said the real opportunity for investors this year will be picking the right sectors. "This is really the year where you see sectors pulling away. So I think whether it's tech or consumer, I think some of these groups are going to make bigger moves than that." Acknowledging estimates for earnings growth this year have been coming down, he argued, "I do think you are going to see earnings rise through the year" as the benefits of the collapse in oil prices are realized.
Another day another 20,000 guess coming your way, there are no stopping these predictions, reminds of all the high flying predictions back in 2000 and 2007, doesn't it? The market can literally do no wrong, just keep buying and don't worry as the market is going to keep surging day after day, zero risk all reward, remember that saying as you press the buy button and go all in, ZERO RISK, ALL REWARD! Dow 20,000 here we come: "This market is going higher," Schatz says By Aaron Task20 hours ago With Nasdaq 5000 seemingly a foregone conclusion, market pundits are already looking ahead to the next big round-number milestone: Dow 20,000 is "definitely" going to happen this year, says Paul Schatz, president and CIO of Heritage Capital. "And if we get there we're going to go above it. " While Dow 20,000 may seem like a big number, it's less-than 10% from current levels and Schatz believes the bull market, while aging, still has plenty of life left in it. "The bull market is old [and] wrinkly but it's not dead," he says. "And usually the end is where you get the biggest 'woosh'" higher. Supporting the bullish case, Schatz says, is the recent rotation out of defensive sectors like utilities, REITs and other 'bond substitutes' into growth areas such as consumer discretionary, semis and biotech. Indeed, the Consumer Discretionary SPDR (XLY) is up about 10% in the past six months vs. 8% for the Vanguard REIT ETF (VNQ), a 6% rise for the Dow Utility Average and a 5.4% rise for the S&P 500. The shorter the time frame, the better the outperformance as the XLY is up 5.4% year-to-date, about double the gains of the S&P 500 and VNQ, and versus a decline of nearly 4% for the utility index. And while some are asking whether the move to retail and other discretionary stocks has already played out, Schatz believes the rotation from defensive to offensive-oriented sectors is still early days. "Every year we leave the consumer for dead and it's a top of the charts right now," he says. "There's some really good bullish leadership. Transports are close to coming back; they're percolating for a big move." As with most market participants, Schatz is watching the Fed very closely and believes they will tighten in late 2015 or early 2016. And while that might cause some short-term selling, he thinks it will actually power the final phase of the bull market as capital from Europe and Asia floods into the dollar, Treasuries and, ultimately, big-cap U.S. stocks. "The final glorious rally is going to be driven by the greenback -- the good old U.S. dollar," he says, offering an alternative to the prevailing fears today about a strong dollar hurting S&P 500 earnings growth, as evinced by warnings from Hewlett-Packard (HPQ), Caterpillar (CAT), Wal-Mart (WMT) and many others. Between now and then, Schatz advice is "buy the dips," suggesting a 3-5% sell-off is probably overdue. "If you want to sell the rips, be my guest, but this market is going higher." Aaron Task is Editor-at-Large of Yahoo Finance. You can follow him on Twitter at @aarontask or email him at altask@yahoo.com. http://finance.yahoo.com/news/dow-2...-is-going-higher---schatz-says-194558552.html
Another week and cnbc has their favorite bull on .....wonder what he will say when all markets collapse and go into a long term bearish correction.... Expect a global equity rally this year: Tom Lee Tom DiChristopher 1 Hour AgoCNBC.com The fact that European stocks have outperformed U.S. equities this year is not a sign of weakness in American markets, Tom Lee told CNBC on Monday. Instead, strength in Europe should provide a tail wind to investment in U.S. stocks, the Fundstrat Global Advisors founder said. "I think it's very bullish that Europe is rallying," he said in a "Squawk on the Street" interview. "I think it doesn't mean the U.S. won't rally. I think this is a global equity rally this year." Read MoreNasdaq 5,000! Will this time be different? Investors should remember that European equities are much more like exporters, and companies there tend to function like multinationals. He said European businesses are sensing better growth in the United States. France's CAC and Germany's DAX were up 7.54 percent and 6.61 percent, respectively, in February, while the S&P 500 rose 5.49 percent and the Dow Jones industrial average jumped 5.64 percent. The FTSE 100 was only up 2.92 percent in February, but it has outperformed U.S. indexes year to date. The Nasdaq surged 7.08 percent in February. It has gained 4.8 percent this year, trailing behind German, French and British markets. As for when the current six-year bull market will lose steam, Lee pointed to two preconditions that marked the downturn in three similar long-lasting rallies. First, the long-term bond yield curve inverted, meaning markets entered a period where long-term debt had a lower yield than short-term debt. Today, it is still positive at about 60 basis points. Second, investment spending as a percentage of gross domestic product reached 27 percent. Currently, investment outlays stand at about 23 percent of GDP, leaving about $600 billion of spending in the pipeline, he said. "I think there's still longevity in this bull market," Lee said.