Evidence over emotion
This week we would like to pass along a research report from Canaccord's Chief U.S. Market Strategist, Tony Dwyer, entitled 'Evidence over emotion'. Please click the banner link below to open the PDF report. Here is the summary:
Summary – We remain focused on intermediate-term potential and reiterate offensive sector position. While our key tactical indicators never reached a level that typically pulls us off the sidelines, the combination of (1) our positive fundamental core thesis remains in place, (2) the synchronized global recovery and improvement in the domestic economic data and EPS, (3) history following long-duration, low-volatility periods, and (4) increased probability of corporate tax cuts does cause us to turn our attention to the intermediate-term opportunity rather than the near-term risk. We believe our SPX 2017 and 2018 targets of 2,470 and 2,720, respectively, may prove to be conservative and would add to positions in the Financial, Industrial, Energy and Materials sectors, especially on further weakness.