The Federal Reserve's talk of tapering asset purchases won't kill the rally in equities, two top market economists told CNBC on Thursday. They said stock prices are likely to rise into 2014.
"Risk assets will eventually collect themselves and will be doing better," said Ward McCarthy, Jefferies & Company chief U.S. financial economist. He cited four reasons for a bullish stance on equities: continued job growth, an improving housing sector, high growth potential in energy and manufacturing that is "poised for recovery." Story at…
…Says Ataman Ozyildirim, economist at The Conference Board: “Despite month-to-month volatility, the LEI’s six-month growth rate remains steady, suggesting that conditions in the economy remain resilient. Widespread gains in the leading indicators over the last six months suggest there is some upside potential for economic activity in the second half of the year.” Press release at….
Thursday, the S&P 500 was down 2.5% to 1588 (rounded).
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)