The "Experts" Are Unanimous: Get Into Stocks

By on December 23, 2010

Adam Shell of the USA Today recently hosted a roundtable featuring the bullish views of Abby Joseph Cohen, Bob Doll, David Bianco, Richard Bernstein, and Dan Chung.  All are suggesting investors should allocate more money towards stocks, as each are predicting double digit gains next year.  Chung is the most optimistic as he sees earnings being better than expected with stocks gaining more than 20% at some point. 

The roundtable believes investors have mistakenly placed too much money in bonds and are underestimating the positive tailwinds behind the stock market advance.  The article also has links to video interviews of the participants.  For those hoping for higher stock prices, the panel doesn’t disappoint in providing numerous reasons for a continued surge higher for this bull market.

SMA Comment: Anytime you get such a unanimous opinion about the future price of anything, caution is warranted.  I’ll be interested in reading the upcoming Barron’s roundtable to see their feelings about the market.  The recent Bespoke Roundtable of bloggers was full of stock market bulls.  Personally, I’m feeling positive about the coming year as it’s the 3rd year of the presidential cycle which is historically the strongest year of the four by far.  However, there are lots of things that could derail the world economy with the highest risks being a continued fall in real estate prices, an economic implosion in China, or massive municipal defaults.  If the market continues higher this year, I’ll be selling into the strength awaiting the next downturn with increased  liquidity.

Source: USA Today

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