A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., March 3, 2020.Andrew Kelly/Reuters
The bulls on Wall Street have been largely right about the stock market over the past two years.
Business Insider asked three bullish stock strategists what they consider the biggest risks.
They worry about geopolitical tensions, a market melt-up scenario, and Fed policy.
With the S&P 500 trading less than 1% below its record highs, there’s plenty to be bullish about on Wall Street.
Inflation is falling back to the Federal Reserve’s long-term target, interest rate cuts appear imminent, and corporate earnings, the consumer, and the broader economy are all proving resilient.
But there are plenty of risks, too, with some economists worried about a cooling labor market and a potential recession.
Yet, those economists have been largely wrong about what could sink the stock market and economy.
Business Insider talked to several people who have been right so far in the past few years, including three bullish strategists, to gauge what’s worrying them about the stock market as it cruises to fresh records.
Here’s what they had to say.
BMO’s Brian Belski
For BMO chief investment strategist Brian Belski, his big concern is that he’s betting against fewer people in the market as overwhelmingly bearish sentiment just a few months ago has now flipped bullish.
“In May/June, when you had a lot of bears or those that had been late to jump on the bull parade all of a sudden switch their forecasts and kind of chase markets up, which is pretty, I mean pretty, pretty, pretty classic,” Belski told Business Insider.
He added: “I just think that too many people are bullish again.”
Though it sounds counterintuitive, Belski is worried about the stock market moving significantly higher, not lower, from here, because that would set up a prime environment for a sharp pullback down the road.
“I don’t want to see a super spike now. I think the faster the market goes up right now, that would worry me,” Belski said.
And with many investors feeling bullish about stocks, the…
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