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Tags: Adams | bullish | stocks | forecast

Wells Fargo Strategist Adams Turns Bullish on Stocks

By    |   Tuesday, 09 September 2014 09:03 PM

A bearish forecast hasn't done Wells Fargo senior equity strategist Gina Martin Adams much good.

At the beginning of 2014 she predicted a year-end level of 1,850 for the S&P 500 index, while it has climbed to 1,988.44 as of Tuesday's close. But now Adams is changing her tune, projecting the index will reach 2,100 in 12 months.

"We've thought for most of this year that we'd have a bit of a trade-off for stocks—earnings growth improving but the timeline shrinking for this very accommodative Fed policy environment," she told CNBC.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

"We think that's still intact, but quite frankly, earnings have started to take over." So any market declines sparked by tighter monetary policy will represent a buying opportunity, Adams said.

Other strategists recently have lifted their targets for the S&P 500, too. David Bianco of Deutsche Bank raised his year-end projection to 2,050 from 1,850. And Stifel Nicolaus's Barry Bannister went to 2,300 from 1,850 on his year-end forecast.

Mark Hulbert, editor of Hulbert Financial Digest, doesn't share their enthusiasm.

"Making the bullish case is getting a lot harder," he writes on MarketWatch.

And why is that? Hulbert cites Robert Shiller's cyclically-adjusted price-earnings ratio for the S&P 500, which is based on 10 years of earnings and trails only the levels of 1929, 1987 and 2007.

Those peaks, of course, were followed by stock-market crashes. Stocks also look overvalued based on cyclically-adjusted price-to-book ratios, price-to-cash flow ratios and price-to-dividend ratios, Hulbert says.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally! 

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Finance
Wells Fargo senior equity strategist Gina Martin Adams has changed her tune on the stock market, and she now expects the S&P 500 to reach 2,100 in 12 months.
Adams, bullish, stocks, forecast
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2014-03-09
Tuesday, 09 September 2014 09:03 PM
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