Stocks hit records again | What is Goldman's biggest worry? | The iPhone decade
EDITOR'S NOTE
Stocks hit records: Get used to the headline because with key fears pushed to the sidelines, the major indexes may continue reaching ever higher.
Bank of America's chief investment strategist, Michael Hartnett, is forecasting a "front-loaded" 2020, writes CNBC's Fred Imbert. Eased trade war and tariff tensions plus predictably loose central bank policies will push the S&P 500 up another 5.2% by March 3, Harnett predicts.
Goldman Sachs, however, notes a key driver of the bull market that is running out of gas. Companies have long been buying back their own shares, which has been a boost to their stock prices, but buybacks declined 15% in 2019 and may drop another 5% next year, Goldman predicts.
This may result in lower earnings-per-share growth and increased volatility.
Stocks hit records on Monday (there it is again, told you) after the U.S. and China announced a phase one trade agreement. The S&P is up 27% year-to-date and on an easy glide path to a closing out a banner year.
The economy appears to be in great shape as well. With unemployment at a 50-year low, the nation's home builders report feeling better than they have in two decades.
Builder confidence in the newly built, single-family home market jumped to the highest reading since June 1999, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
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