05-07-2018, 02:02 PM
"The bounce could be a few weeks away. We don't think we are any more than two months away," said Harvey, noting that's when second quarter earnings season kicks off. Harvey sees strong earnings reports ultimately pulling the market out of its rut. He characterized 2018's violent market sell-offs as "classic textbook" in a Federal Reserve tightening cycle. "When the Fed tightens, you usually see the curve flatten. When the curve flattens, you have a price adjustment. The price adjustment in the equity market is 5 to 10 percent," he added. Harvey's S&P 500 year-end target is 2950 — a 10 percent gain from its current levels. He views this environment as a buying opportunity, and added that he's partial to technology and financials. Yet Harvey urged investors to be deliberate with their choices.
A bounce could boost stocks in just weeks, Wells Fargo predicts
Good to know some still see a bounce in stocks on the back of the best earnings season in a quarter of a century. And apparently we have to go into value stocks:
Ernesto Ramos of BMO Global Asset Management expects Citigroup to benefit from higher trading revenue because of increased stock-market volatility and expanded net interest margins as rates rise. Ernesto Ramos of BMO Global Asset Management helps manage funds that follow value and growth strategies. He says value may soon win out over growth after years of underperformance.
Here’s a powerful argument for favoring value stocks over growth stocks - MarketWatch
Last week, the Chicago Board Options Exchange (CBOE) responded to a research report into manipulation of the monthly settlement of the VIX, sometimes referred to as the stock market’s fear index, and attempted to assure participants that the process was not rigged. “The academic paper’s analysis and conclusions are based upon a fundamental misunderstanding about how VIX derivatives are traded and settled,” the CBOE wrote. I was an author of the research paper. The CBOE’s most recent response has left my "fundamental misunderstanding" still very much unresolved.