“This Bull market does not look overbought in here” — Paul Ebeling
Analyst and investors see several parts of this market, including financials, leisure & hospitality stocks and energy with strong rally potential into Y 2021.
Investors looking for a continued rally are optimistic of a rebound in corporate earnings.
Earnings are going to be used as a confirmation of current pricing.
S&P 500 company earnings are forecast to increase about 23% in Y 2021 compared with Y 2020.
We expect last year’s laggards to join the rally in Y 2021 in a broader rally, with a strong showing by value stocks, shares of small caps and non-US listed stocks.
And growth companies with dominant and emerging business models that can continue to meet or exceed shareholder expectations will continue to participate.
Have a healthy Happy Holiday weekend, Keep the Faith!