Stock Rally Is Like Dot-Com ‘Groundhog Day,’ Stifel’s Bannister Says

  • Strategist maintains contrarian call, says S&P could drop 13%
  • Peak in growth, value trends ‘presage’ bear market, he warns
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Bulls are charging around in stock-market forecasts, but to Stifel, Nicolaus & Co.’s Barry Bannister, this rally looks like a 1990s dot-com bubble all over again.

Breaking with the Wall Street consensus that US stocks can keep climbing, the strategist expects the S&P 500 Index to plunge to the “very low” 5,000s by the fourth quarter, a roughly 13% decline from the benchmark’s closing price of 5,713.64 on Thursday.