Jeffrey Saut, chief investment strategist at Raymond James, predicts that the stock market will be drive in 2017 by profits and that profits, not low interest rates, will drive 2017’s bull markets. He further predicts that socks will trade high over the next few years, generally – with the occasional pullback providing extra opportunities for the savvy investor.
Key Takeaways:
- Corporate earnings growth in the US has slowed for months, while the bull market continued and stocks rose to all-time highs with a few pauses here and there.
- However, profits are set to become the primary focus of markets again in 2017: interest rates have bottomed, Saut said, and tax cuts under the new administration could bring substantive earnings growth.
- Saut reckons that getting the corporate tax rate to 15% “could prove to be difficult.” “Still, a 25% tax rate would produce an earnings estimate for 2017 of ~$144,” he wrote.
“What’s traditionally the most important driver of the stock market will retake its place in the new year, according to Jeffrey Saut, the chief investment strategist at Raymond James.”
http://www.businessinsider.com/stock-market-interest-rates-earnings-2016-12
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