Great headline from Bob Doll (Nuveen Investments) latest newsletter.
“….we think the easy gains for equities are in the rearview mirror and we are growing less positive toward the stock market. We do not believe the current bull market has ended, but the pace and magnitude of the gains we have seen over the past year are unlikely to persist.”
His key points:
We believe investors are overly complacent about the state of the global economy and the political backdrop.
We remain cautiously optimistic toward equities, but think the pace of recent gains is unlikely to persist and that risks will rise this year.
Still positive on the economy but wary of the political backdrop seems a common theme among investment managers. The timing of any reversal (Doll: 2018) will largely be determined by inflation and interest rates.