Four major bank analysts joined a host of other Wall Street bulls, declaring that the stock markets have finally bottomed. Experts from JPMorgan, Barclays Capital, and PNC Financial have all announced their claims in past weeks via research notes and reports. JPMorgan Chase chief equity strategist Thomas Lee predicts an S&P 500 low range of 750-800 range through June. That index closed at 870 today. The note from Lee also cited modest evidence of a stabilizing economy as cause for second-half optimism. A day after Lee's note Barclay Capital's Head of research Larry Kantor said, "If we get through earnings season without a big retrenchment, I'll be more optimistic this is not a head fake." Kantor adds that in his opinion the US economic data has "gone from unambiguously negative to mixed." PNC Wealth Management chief Strategist Bill Stone also sees signs of "green shoots" in the latest economic readings. Stone opines that "stocks represent an attractive risk." Stone further asserts that "the stock market historically advances before there are positive signs from the economy or corporate earnings."
Equity analyst Teun Draaisma of Morgan Stanley also acknowledged there are signs of economic stabilization, and perhaps even the next bull market.
Draaisma's comments point to three vital signals that end a bear market: earnings results, U.S. housing data and recovering bank balance sheets.
(Thanks to reader John C for the supporting data for this good news story)
