For over 10 years Sam and I have been friends. I have deep respect for his knowledge of market history, trends, and just as importantly- the investor psychology that drives the market over the short term. One of Sam’s specialties is his understanding of sector rotation and how it fits within bull and bear market cycles.
Watch Part 1 of my interview with Sam Stovall below.
Sam not only shared his currently bullish stance on the stock market, but he also spent time on the bigger picture- what investors can do to harness the understanding of what makes the market tick, as well as pitfalls and mistakes that investors can avoid to improve their own performance within the markets.
With the benefit of the S&P team, one of the deepest team of analysts on Wall street, Sam shared is positive view of the market and reminded us the trend is your friend.
We also spent time reviewing Sam’s latest book, The Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market.
Our segment showed why Sam is regarded as one of today’s top market commentators and also why he is so sought after to speak at conferences. His clear, plain speak, and deep knowledge helps investors to grasp the complexities of the market.
Sam’s recent market comments are below:
Like a veteran basketball player preparing to shoot from the foul line, the market appears to be ignoring the peripheral distractions intent on averting its focus on the prospects for improving global economic growth. The recent GDP revision showed that the inventory drawdown stole 3.6 percentage points from Q4 growth. And with inventories still lean, investors may now be assuming that future GDP reports will be more encouraging. What’s more, investors appear to be dismissing further housing weakness as a concern that has played itself out. Indeed, S&P Economics projects residential construction to rise by 1.8% in 2011 and by 23.5% in 2012. The market now has to decide if the rake-hike leapfrog of ECB, BOE and Fed occurs as anticipated.
From a technical perspective, the stock market continues to rally very impressively and is within striking distance of its mid-February bull market high. While we think the major indices will pullback slightly after reaching their recent peaks, we believe a break to new recovery highs will be seen in the next couple of weeks.
*DISCLOSURE: No relevant position
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