Jeff Saut, Chief Equity Strategist at Raymond James, says the recent move in stocks is not likely to be followed by a large decline. Instead, he says the markets are likely to to take a breather before resuming the uptrend. He cites 7 primary positive catalysts that should bolster the market:
“Accordingly, one would expect the equity market to pause, and/or pull back, from here. Yet, we don’t think any pullback will gain much downside traction because the news backdrop is likely going to get much more positive. Indeed, the Greek “can” has been kicked down the road, gasoline prices have declined 15.8% from their early May “highs,” auto production is slated to ramp 23%+ next month, Japan’s economic numbers are getting better, the world’s “mean men” are falling like dominos, capex is geared to surge since the era of 100% expensing ends soon, and when the debt ceiling is increased the stage should be set to drive stocks higher.”
Source: Raymond James
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