GO
Loading...

3 Reasons to Get Bearish: Wells Fargo’s Adams

Thursday, 25 Oct 2012 | 12:44 PM ET

Three large factors are exerting downward pressure on stocks, Wells Fargo Securities Institutional Equity Strategist Gina Martin Adams said Thursday on CNBC.

"I think that the fundamental case is actually weakening going forward," she said on "Fast Money." "If you take a look at the sequence of earnings growth, we really started to see earnings teeter in the second quarter, and that's continued into the third quarter."

3 Factors to Get Bearish: Strategist
Three hurdles are exerting pressure on stocks, Wells Fargo Securities Institutional Equity Strategist Gina Martin Adams says.

Adams looked at three factors for getting cautious: Earnings, valuation and policy uncertainty.

(Read More: S&P to 1,550 — Then 'Off the Cliff': Sam Stovall)

Economic concerns in Europe were a headwind, but uncertainties surrounding the "fiscal cliff" have served to acerbate problems.

Adams said that it wasn't necessary to solve the "fiscal cliff," which would trigger automatic federal spending cuts in January and see the expiration of the Bush tax cuts.

(Read More: S&P Could Still Hit 1,600 Year-End: Bannister)

"We just need to have a revival in sentiment, a revival in confidence, and that probably comes with a plan being set," she said. "We need a credible plan."

Trader disclosure: On Oct. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long SBUX; Stephanie Link is long VALE; Stephanie Link is long EMC; Stephanie Link is long IBM; Joe Terranova is long VALE; Joe Terranova is long SBUX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VVZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long GS; Joe Terranova is long GLW; Michael Murphy is long AAPL; Michael Murphy is long WFC; Michael Murphy is long TGT; Michael Murphy is long TWI; Michael Murphy is short FB; Enis Taner is long AAPL PUTS; Enis Taner is long GS; Enis Taner is long WYNN PUT SPREAD;

For Toni Sacconaghi
Toni Sacconaghi maintains a long position in Seagate Technology (STX).
All statements in this report attributable to Gartner represent Bernstein's interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this report). The opinions expressed in Gartner publications are not representations of fact, and are subject to change without notice.
Bernstein currently makes a market in the following companies AAPL / Apple Inc.

______________________________________________________
Got something to to say? Email us at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our website, email fastmoney@cnbc.com.

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report