Tags: Kee | stocks | earnings | economy

Analyst Kee: Stocks Might See 'Material Weakness' Next Year

By    |   Monday, 29 December 2014 01:28 PM

The S&P 500 index hit yet another record high Monday, but Thomas Kee, CEO of Stock Traders Daily, says the party may end next year.

"Without stimulus our economy is likely to look much different than it has in years past," he writes in an article for MarketWatch.

"Corporate earnings growth will likely look different, and economic activity will likely look different," Kee says. "That raises a few eyebrows, because 2000 and 2007 were seven years apart, just like 2014 is seven years after 2007. That, we can only call coincidence."

The stock market crashed soon after its peaks of 2000 and 2007.

Kee's statistical analysis shows that "if this market does pull back in the final few days of this year and mimics Decembers in 2000 and 2007, it will set the stage for 2015," he says. "And if history repeats itself we could see material market weakness for the first time in years."

The S&P 500 has returned 15.5 percent so far this year.

Meanwhile, Kristina Hooper, U.S. investment strategist at Allianz Global Investors, sees mild gains for stocks next year. "We've borrowed something from 2015. We wouldn't be surprised to see a give back in January," she tells CNBC.

A strengthening economy will be able to push stocks up only in the mid-to-high single digits next year, Hooper notes. A 5 percent climb for the S&P 500 from Monday morning's level of 2,093 would put it at 2,198.

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The S&P 500 index hit yet another record high Monday, but Thomas Kee, CEO of Stock Traders Daily, says the party may end next year.
Kee, stocks, earnings, economy
243
2014-28-29
Monday, 29 December 2014 01:28 PM
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