Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Bears, give it a rest

Friday, May 16, 2014 - 02:22

May 16 - With Treasury yields, small cap and tech stocks faltering, the rumbling of market bears is growing louder. But some market strategists say they should back off. There's nothing to growl about. Jeanne Yurman reports.

▲ Hide Transcript

View Transcript

Market bears have been giddy lately. They say that Treasuries recently notching a six-month low and growth stocks selling off are smoke signals that the bull market will soon snap. Not so, says Diane Garnick, CEO of Clear Alternatives. Lower yields simply reflect investors chasing higher returns after word of the European Central Bank's stimulus efforts pressured foreign interest rates. SOUNDBITE: DIANE GARNICK, CEO, CLEAR ALTERNATIVES (ENGLISH) SAYING: "A lot of these global bond managers are just shifting from the EU and over and from Japan into the US and that's one of the things we're seeing happening right about now." Nervous investors had watched those sinking yields this week and piled in. And those who have been short the bond market got squeezed, forcing the purchase of more bonds and lower yields. As for those slumping growth stocks, many analysts say look more closely. A selloff in select high fliers is clouding the picture. David Gaffen, Reuters U.S. Markets Editor. SOUNDBITE: DAVID GAFFEN, U.S. MARKETS EDITOR, REUTERS (ENGLISH) SAYING: "Internet, retailers, Priceline, Netflix, all this stuff went way, way up. Tesla Motors is a big one people love to talk about. That one that certainly went through the roof as well. So that's a sort of small core group in a few industries that were definitely overvalued but in the broader market its not there." Bears also highlight factors like buying stocks with margin debt is ballooning and when the S&P 500 or Dow hit new records it's on low volume - more signs of a teetering market. Bob Doll, Nuveen Asset Managemnt's Chief Equity Strategist says he's heard it before. SOUNDBITE: BOB DOLL, CHIEF EQUITY STRATEGIST, NUVEEN ASSET MANAGEMENT (ENGLISH) SAYING: "Those bears have been crying those woes for some time and haven't had it right yet. That doesn't mean they won't have their day in the sand. So look I think with the volatility moving up as a result of liquidity lessening in the market we're going to get a bump. We've had a bumpy ride. I think we'll have more bumps along the way. But I do think the overall direction will continue to remain going higher." Doll adds that investment has flowed into cyclical, value oriented stocks, which can only pay off if investors think the economy and therefore, the market will improve.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Bears, give it a rest

Friday, May 16, 2014 - 02:22

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)