Calm in Stocks Ending as Earnings Season Brings Volatility – Bloomberg 07-09-14

Salient to Investors:

  • Matt McCormick at Bahl & Gaynor says investors are bracing for more volatility on the basis that the economy and market are not as strong as they thought.
  • Raymond James said equities are vulnerable to losses. Citigroup is concerned about a severe pullback.
  • Christine Lagarde at IMF forecasts a cut in global growth forecasts on continued weak investment and US risks.
  • Peter Tuz at Chase Investment Counsel expects increased volatility and says the extremely low VIX period is over.
  • Frederic Dickson at D.A. Davidson says the rise in the VIX from 11 to 12 is just a technical correction and not a concern: going to 20 would be.
  • Jason Brady at Thornburg Investment Mgmt says the market is relatively high-priced and vulnerable to a selloff, so is increasing cash and replacing riskier stocks with safer ones.
  • The S&P 500 is at 18 times earnings, the highest since 2011. Analysts predict profit growth of 5 percent in Q2 2014. Over 130 S&P 500 companies report quarterly results in the next 2 weeks.

Read the full article at http://www.bloomberg.com/news/2014-07-09/stocks-calm-ending-as-earnings-season-brings-volatility.html

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