Tuesday, January 28, 2014

Why Bob Janjuah is bullish early 2014

On why the markets can outperform higher early this year 2014:

More of the same I suspect – any weakness in earnings will be ignored (virtually all of last year's equity market gains were NOT earnings or revenue growth driven, but were rather virtually all multiple expansion driven), any bad economic data will be ignored – the weather provides a great cover,  and instead markets will I think see (one last?) reason to cheer the Fed and/or the BOJ and/or the ECB and/or the PBoC. 

In particular, the market will fully expect a more significant BOJ easing after the coming tax hike, and I have little doubt that Ms Yellen will – for now – be dovishness personified once she is officially in charge and starts speaking.