Bull market 'feels toppy' and could have weak start to the year, Bank of America says

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The first part of 2020 could be tough for stocks amid lackluster earnings while the major indexes are at record highs, Bank of America says.

Bank of America strategist Savita Subramanian said the current bull market "feels toppy," noting the S&P 500's three-month earnings revision ratio was essentially flat between November and December.Subramanian added December's ratio of 0.68 is also well below the long-term average of 0.86.

The first part of the new year could be tough for stocks as lackluster corporate earnings fail to justify indexes at record highs, according to Bank of America Merrill Lynch. However, this strong performance now puts more pressure on companies to deliver strong corporate earnings. If they don't the broader market could be in for a rocky ride.

Data from The Earnings Scout shows analysts lowered their first-quarter profit estimates on 10 of the 15 companies. These companies include FedEx, Nike and semiconductor builder Micron Technology.

 

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This bull market can use some wall of worries.

This market will be 20% lower by January 15. BA is a garbage stock along with FDX and MU. Easily three of the most overvalued companies in America. BA will be 290, FDX will be 120 and MU will be 45 by the end of the month.

Toppy and choppy

mr_jettlife

I predict a major crash. Trump is going to pull something incredibly f'd up which will cause a massive collapse of the economy.

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