Wells Fargo’s Gina Martin Adams Predicts Major Pullback for Stocks

By on September 24, 2013

Gina Martin Adams - Wells FargoSpeaking to CNBC’s Bertha Coombs, Gina Martin Adams, Wells Fargo Institutional Equity Strategist, predicts the rise in interest rates this summer will lead to a stock market pullback of 16 percent.

Adams said stocks tend to follow rates over time. The move from 1.6% to 2.7% in the 10-year Treasury is a potential tremendous shock over the next six months, Adam stated.

A 100 basis point increase in rates implies a 10 percent pullback in stocks, Adams explained.

Adams said the entire increase in the S&P this year has come from an increase in the earnings multiple and not strong earnings.

3 Comments

  1. Bjorn Magnusson

    September 25, 2013 at 3:59 pm

    As soon as stock market drops interest rates will fall too. Correction will not exceed 7% for the foreseeable future.

  2. John "Bo" Schneider

    September 25, 2013 at 10:12 pm

    I’ve made love to countless women, but none as sanguine, nor mercurial, as Gina. You remain a memory.

  3. Abby Jo

    October 10, 2013 at 1:34 am

    I dont know who this lady is but I would listen to people like Jim Rogers, Marc Faber more than her or the crooks at Goldman.

    “We are in a bull market that is in the tail-end instead of the beginning but that does not mean prices will collapse.”

    http://drmarcfaber.blogspot.com/2013/09/stocks-are-in-tail-end-of-bull-market.html

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