Bear? What bear?
Yes, the Bull seems to be running strong in the markets this week.
The S&P 500 recordingits best weekly gain since March.
The Nasdaq putting up 8 straight days of gains.
David Darst, Chief Investment Strategist at Morgan Stanley Smith Barney said on the Closing Bell he expects stocks to move higher despite bearish sentiment.
Darst says the ‘bullish-to-bearish ratio on the market is 27% bulls, 54% bears.’ While sentiment is still negative, Darst says earnings will remain key in determining the market’s direction.
And so far, it has.
Earnings have impressed beating estimates by an average 16% for the 38 companies in the S&P 500 that released results since July 8. Because of that, the S&P 500 has been rewarded, up almost 39% from its 12-year low on March 9.
Question is - is this rally for real? Lee Munson, Chief Investment Officer at Portfolio Asset Management seems to think so.
Munson said on the Closing Bell that he expects the S&P to go to 1000 or 1050 in Summer or late Fall. His picks? Altria, Verizon and Berkshire Hathaway B shares. Plus, he’s looking to get back into Bank of America.