Bears have plenty to roar about
Markets: The bears have plenty to roar about - at Moneyweek.co.uk - the best of the week's international financial media.
Christmas is here early for the bears, says www.TheStreet.com. They have had "plenty to roar about" over the past two weeks as their prediction that a weakening dollar could prompt an exodus of foreign investors from US assets "finally got some support"; the mutual fund scandal, terrorism and signs of an incipient trade war have added to recent jitters. Meanwhile, given the muted response to good news on the earnings front, "there seems little prospect of excitement" for US equities even if there are positive surprises in store, says Chris Flood in the FT. The market seems concerned that the third quarter's impressive growth may not prove sustainable. HSBC notes that the 21% year-on-year surge in S&P 500 firms' profits is due largely to labour-saving technology and rigid cost-cutting; revenue growth accounted for just 7%.
Market history also militates against substantial further gains, says www.Dailyreckoning.com. Stocks tend to rise in real terms for 17-20 years, and then fall for 17-20. And while they have fallen since 2000, they are still at epic highs, so the odds of them rising are not good. "A lot has happened over the course of the past two decades that could twist history, but nothing that is likely to make a share worth more than 30 times earnings."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
73% of savers plan to rely on partner’s pension in retirement
A new survey suggests the majority of people may lack financial independence in retirement, with almost three-quarters set to rely on their partner’s pension
-
How much you need to follow the 25x retirement rule – will you have enough to be financially independent?
We explain what the 25x retirement rule is and the amount you would need to be financially independent in retirement.