Rising Pessimism in Stocks Is Buy Signal for PNC, Raymond James
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Warnings from securities firms that equity returns will slow and increasing bearishness among brokerage clients are signs to Raymond James & Associates and PNC Wealth Management that stocks may rally.
Investors who bought as skepticism climbed have been rewarded this week with a 3.7 percent advance in the Standard & Poor’s 500 Index after a two-week slump erased $2.7 trillion in global equity value. The gains show why buying when others are growing less optimistic may become a profitable strategy after bears change their minds, according to Jeff Saut, the chief investment strategist at Raymond James, which manages $230 billion in St. Petersburg, Florida.