Barron’s Laughable Cover Story on the Stock Market Outlook for 2016

Posted on: 12/14/2015

Charles (Chuck) Self, iSectors CIO, COO

Charles (Chuck) Self, iSectors CIO, COO

Barron’s presented 10 “prominent” strategists’ views on the economy and 2016 market this last weekend (12/12/15). I laughed as I read the article this past weekend.

My takeaways are as follows:

  1. Every one of them expects the market to go higher next year.
  2. If the 2015 S&P 500 earnings come in around 2014’s $113/share instead of the $118/share cited in the article, the experts’ target of $123.50/share (+9%) is likely unobtainable.
  3. Every one of them believes 10 year yields will rise next year.
  4. The guy who is the closest to the Post-MPT model thinking, Tobias Levkovich, got 2 sentences in the article while others got paragraphs or even sections.

Given the madness of the Barron’s article, our [iSectors’] contrary view of overweighting bonds and underweighting stocks (especially consumer durables and basic materials) seems warranted!

Here is a pdf of the article – if you could not access the article (not a Barron’s subscriber).

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