One of the safest assumptions on Wall Street is that however high stocks have climbed, professional forecasters will say they can go higher. That’s not the case now.
The S&P 500 Index dropped the most in four weeks on Tuesday and is now fluctuating around 2,157, the lowest level in three weeks. And, for a change, turning to equity strategists offers little comfort. As much as they have loved the bull market, a year of stagnating earnings, inflated valuations and confusion about the Federal Reserve has left prognosticators playing an unfamiliar role as bears.