Tags: Lefkowitz | stock | growth | S&P 500

UBS' Lefkowitz: Stock Selloff Was 'Unfounded'

By    |   Wednesday, 29 October 2014 01:15 PM

Now that stocks have nearly recovered from their recent plunge, many market participants maintain that equities are on quite solid footing.

"We thought the selloff was unfounded, and now people are buying into the notion that it wasn't based on any change in the fundamentals," David Lefkowitz, equity strategist with UBS Wealth Management, tells The Wall Street Journal. "It's very good for the stock market."

The S&P 500 index dropped 10 percent from its record high Sept. 19 to its low Oct. 15. It has rebounded 9 percent since then.

"Here we are just two weeks later, and we've just about gained it back," Scott Wren, a stock strategist at Wells Fargo Advisors, told The Associated Press. "We think it's still going up."
Continuing signs of strength in the U.S. economy and strong third-quarter earnings reports have buoyed stocks. GDP expanded 4.6 percent annualized in the second quarter, and many economists expect growth of 3 percent or more for the second half of the year.

"People have woken up to the fact that maybe global growth isn't going to collapse . . . so the sectors that are more economically sensitive are being bought," Mark Luschini, chief investment strategist for Janney Montgomery Scott, tells The Journal.

Meanwhile, 80 percent of the S&P 500 companies that have reported earnings so far have topped analysts' forecasts, and 60 percent have bested revenue estimates, according to Bloomberg.

"Confidence is good, and we're predicting Christmas is going to be very strong," Philip Orlando, chief equity strategist at Federated Investors, tells the AP. "Stocks are cheap right now."
 

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Now that stocks have nearly recovered from their recent plunge, many market participants maintain that equities are on quite solid footing.
Lefkowitz, stock, growth, S&P 500
266
2014-15-29
Wednesday, 29 October 2014 01:15 PM
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