Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: Hulbert | stock | market | gains

Hulbert: Major Stock Indicators Point to More Gains

By    |   Tuesday, 22 May 2012 05:02 PM EDT

With the Standard & Poor’s 500 Index having dropped 7 percent from its April high, some forecasters say the bull market is over.

But investment guru Mark Hulbert doesn’t agree. “That’s because only a minority of the indicators that have accompanied prior major stock market tops are present today,” he writes on MarketWatch.

As for the indicators:

“Valuation is no worse than neutral,” Hulbert says. The current price-earnings ratio for the S&P 500, based on trailing 12-month earnings, stands at 14.9, a bit below the 140-year average of 15.5.

Monetary conditions also are no worse than neutral, Hulbert maintains. Interest rates are near record lows, and the Federal Reserve doesn’t plan to raise rates before late 2014.

When it comes to sentiment, “almost all the indicators in this category are outright bullish,” Hulbert writes.

As for technicals, “this category is the most negative,” Hulbert says.

So what do you get when you put all this together? “It would certainly appear as though the better bet is that new bull market highs are still ahead,” he writes.

Others also see gains, at least for the short term.

“The U.S. equity market remains strong relative to the rest of the world,” writes Bank of America technical analyst Mary Ann Bartels in a note obtained by WSJ.com. “The bull story is that foreign investors want to own U.S. equities.”

© 2024 Newsmax Finance. All rights reserved.

Tuesday, 22 May 2012 05:02 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved