Tags: Wells Fargo | Stocks | Fall | Drop

Wells Fargo's Adams: Stocks May Tumble Another 10 Percent

By    |   Thursday, 31 July 2014 10:09 PM

The S&P 500 lost 2 percent Thursday, and that may just mark a beginning of the decline, says Gina Martin Adams, senior equity strategist for Wells Fargo.

She predicted at that start of the year that the S&P 500 would end 2014 at 1,850, little changed from the end of 2013.

"Our price target for the end of the year implies that we're probably about 5 percent down [4.2 percent down from Thursday's close] at the very least, at some point in the second half of the year," Adams told CNBC.

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"You have to prepare yourself for up to 10 [percent]. Ten is very normal in the grand scheme of markets, and would actually be fairly healthy, washing out some of that excess optimism we've developed and some of the complacency we've developed."

A 10 percent slide from Thursday's close of 1,930.67 would put the S&P 500 at 1,738.

A pullback is normal given the Federal Reserve's decision to gradually withdraw its stimulus, Adams said.

"When you look at history, it is very typical for the market to start to show some volatility, start to show some weakness in areas when the Fed is shifting gears."

Financial commentators offered a host of explanations for Thursday's stock decline, citing everything from Argentina's debt default to some weak corporate earnings reports.

"There are so many things that are coming to a head simultaneously," Joe Spinelli, head of single stock trading at Deutsche Bank, told The Wall Street Journal. "Clients are wanting to get into a position to ride out any storm that might pop up."

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The S&P 500 lost 2 percent Thursday, and that may just mark a beginning of the decline, says Gina Martin Adams, senior equity strategist for Wells Fargo.
Wells Fargo, Stocks, Fall, Drop
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2014-09-31
Thursday, 31 July 2014 10:09 PM
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