Why Barclays Sees Waning Bull Market

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Aug. 18 (Bloomberg) -- Bloomberg’s Joseph Ciolli reports on Barclays outlook for the markets. Ciolli speaks on “In The Loop.” (Source: Bloomberg)


The s&p 500 is coming up and it comes down to companies exhausting all of their options.

We have seen expansions and i've asked, things that are artificially inflating earnings.

Things that are running their course and valuations are a bit overstretched.

People are thinking it may not be time for a correction, but a bit of a slowdown.

Lexis profit growth of almost 9% in the second quarter year-over-year and sales growth of about 5%, has that peak?

Is that what you are hearing?

People are thinking that the valuations as stretched as they are, and companies cutting jobs, they are on their last legs in terms of things that will expand margins.

Once that is reinforced, people will be looking for earnings growth as well.

Having said that, many people have come out and warned that things will be dire for a long time and it has not exactly panned out.

That is true.

In the beginning of 2010, there were calls for the end of the bull market, and in 2013 as well.

And in both of those years we saw double-digit returns in the smb.

It is kind of a boy cried wolf situation.

-- in the s&p. it is kind of a boy cried wolf situation.

There will be a raising of the interest rate theoretically at some point next year and i will put him down pressure on the stock market.

Anytime we see anything from the federal reserve hinting at that, we see a reaction in the market.

And there are clinical concerns in the ukraine and middle east.

That has also stirred reaction from investors.

And you are seeing investors buying protection.

Tell us about that.

Bank of america did a survey of a bunch of money managers.

They manage about $600 billion.

They are buying downside protection at the highest rate since 2008. people are wary of valuation.

They don't want to be the last out the door if the market starts going the wrong direction.

For every 100 bullish calls on the cboe, money has changed hands.

That is the most since 2013. we are on the market again in 30 minutes.

"market makers" is next.


This text has been automatically generated. It may not be 100% accurate.


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