Photo: BMO Capital Markets
BMO chief investment strategist Brian Belski went on Bloomberg TV yesterday and made a huge call: he told viewers that “we’re on the verge of the next great bull market” in stocks.Belski said that “in the last 10 – 12 years we in the investment world have become so macro dominated we’ve forgotten that really fundamentals define stocks. We live by one very simple premise that stocks lead earnings, which lead the economy.”
Belski put together a presentation for clients outlining his bullish thesis based on 16 economic and market indicators he factored into his call.
A few highlights from the presentation:
- Job growth has rebounded into year-end in recent years, and Belski expects that pattern to repeat in 2012
- Economists recently lowered economic forecasts, which means there is greater likelihood of an upside surprise
- Belski isn’t worried about a flattening yield curve because the last five recessions have been preceded by a steepening yield curve
- Investor sentiment has become exceedingly bearish, which is a good contrarian indicator
- Small business hiring plans have been on the rise
Bottom line: Belski doesn’t see so much to worry about.
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