J.P. Morgan Chase, Citigroup and Bank of America are among the banks set to deliver third-quarter results next week
If bull markets die in euphoria, as Sir John Templeton once famously said, then the market may be approaching the sort of exuberance that might have put the British investor and fund manager on edge.
At least, that’s judging by the recent coverage of the unrelenting stock-market climb into record territory, with few signs on Wall Street of the historical normal levels of fear or volatility as measured by the CBOE Volatility Index VIX, +5.01%
On CNBC’s “Halftime Report” on Friday, hosted by Scott Wapner, guests and regulars on the segment struggled to offer a bearish comment.
“For the first time in a number of years,” investors are looking at a “global economic recovery” that is synchronized, said regular contributor Josh Brown, chief executive officer of New York investment advisory firm Ritholtz Wealth Management.
Others on the segment pointed to revived optimism over the prospect of wide-ranging corporate tax cuts from President Donald Trump’s administration and congressional Republicans. Erin Browne, UBS’s head of asset allocation, said “we are in the very early days” of the tax trade, and “very little” of the market’s current rally is being fueled by tax-overhaul hope.
On top of that, quarterly corporate results are expected to outperform, and economic readings have been better than expected, if not a bit muddled by recent natural disasters.