Barron’s Roundtable Members are Bullish and Complacent

By on January 19, 2010

Joe Weisenthal reports several brief comments from the annual Barron’s roundtable. Not surprisingly, after a strong bull market move almost everyone sees higher stock prices ahead.

Felix Zulauf: “Cyclical forces are bullish … the market probably has 10% upside from here… my next recommendation is to short government bonds.”

Abby Joseph Cohen: “We think global growth won’t be too bad in 2010 … we’re forecasting S&P 500 earnings of $75 to $76 this year and $90 next year.”

Fred Hickey: “The stock market will likely be up this year, unless the dollar collapses.”

Scott Black: “I figure S&P 500 earnings will be closer to $66, which puts the market at 17.3 times earnings, about the historic norm.” and, “The underpinnings of the economy aren’t quite as bleak as everyone thinks.” “Liquidity and another stimulus package will keep the market up.”

Oscar Schafer:

Marc Faber: “The S&P 500 won’t revisit the March 2009 low of 666 in nominal terms ever again.” “Fifteen times earnings seems about right for the market, and earnings could grow a little this year … fair value isn’t so different from where the market is now.”

Meryl Witmer:

Archie MacAllastar: “I’m an optimist, I expect the S&P to earn $75 to $80 this year. Public participation will increase.”

Mario Gabelli: “You’ll be up 5% to 10% in the first half of the year … interest rates at some point will top 4%.”

SMA Comment: There were several interesting comments following Weisenthals’ article. One individual pointed out that Marc Faber believes it possible that the market could fall below the March 2009 low on an inflation adjusted (real) basis.

Source: The Business Insider (The Money Game)

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