Tags: Wall Street | bull | stock | bear

Financial Adviser Cahn: Wall Street's Bullishness on Stocks 'Scary, Dangerous'

By    |   Monday, 15 September 2014 12:33 PM

Several Wall Street strategists have lifted their year-end targets for the S&P 500 index in recent days, as the market continues climbing to record highs.

The latest peak of 2,011.17 came Sept. 4. The index traded at 1,984 Tuesday morning.

But some experts worry that all the positive sentiment signals that the market may be ready for a stumble. "It's kind of scary, isn't it?" Jim Cahn, a Minneapolis-based financial adviser with Wealth Enhancement Group, told The Wall Street Journal.

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


"When no one's fighting about which way the market's going to go, it's dangerous. If they turn out to be wrong, everyone runs for the door at the same time."

Prominent strategists who have raised their estimates include Gina Martin Adams of Wells Fargo Securities, David Bianco of Deutsche Bank, Barry Bannister of Stifel Nicolaus & Co. and Adam Parker of Morgan Stanley.

Parker says the S&P 500 could reach 3,000 in the next five years.

While Bianco was a bear recently, he has changed his tune. But he still cautions that the stock market won't soar.

"I'm usually a lot happier to pound the table on stocks when I can point to strong earnings growth, and we don't have that," he explained.

"It's the big bear capitulation," said Jamie Cox, managing partner at Harris Financial Group in Richmond, Va., which oversees $675 million. "These guys were wrong and they're coming to the realization that they have to do something different."

Some market participants say an aggressive stance by the Federal Reserve on raising interest rates could hurt stocks.

"The worry is if the Fed has to lift rates sooner rather than later, there's the question of when, but also what the trajectory of interest-rate increases will be and if it will undermine this sanguine picture of equities as the only game in town," Mark Luschini, chief investment strategist at Janney Montgomery, told Bloomberg.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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Several Wall Street strategists have lifted their year-end targets for the S&P 500 index in recent days, as the market continues climbing to record highs.
Wall Street, bull, stock, bear
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2014-33-15
Monday, 15 September 2014 12:33 PM
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