The Dow crossed 17,000 for the first time on Thursday after a monster U.S. jobs report.
“Six months into the year it’s become clear to us that 2014 is likely to be remembered in market history books as a year of big surprises,” writes Oppenheimer’s John Stoltzfus.
“From our vantage point on the market radar screen it confirms that indeed the economy is getting better, that stocks continue to gather a following among investors after many years of being ignored, untrusted and unloved by more than a few.”
Stoltzfus believes that investors and traders will be watching the upcoming earnings season closely.
“Market participants will be looking for further improvements in revenues and earnings growth that along with financial engineering in the form of share buybacks have helped move the market higher through the recovery since 2009,” he said. “Guidance as to what corporate leadership sees ahead will likely carry increasing weight.”
As the Federal Reserve continues to let up on its easy monetary policy, Stoltzfus warns that the market could experience a ramp up in volatility.
Stoltzfus just published a brief 35-page presentation putting every corner of the financial markets into perspective.
Thanks to Oppenheimer & Co. for giving us permission to feature this presentation.
Valuations for defensive stocks are also rich, but earnings expectations for these could also be too conservative.
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