Former U.S. stock market bears are currently forecasting low increases throughout the rest of this year for the S&P 500. These small gains were predicted following a rally that has caused the index to rebound from its financial-crisis lows.
The U.S. stock market has lost most of its bears, worrying many investors that whenever stocks are hit by any shocks, the lack of skeptical investors will result in increased damage, reports The Wall Street Journal.
According to Bloomberg, throughout this year, the S&P 500 has settled at new highs 33 times in 2014 with no more than 6 percent of companies in bear markets. This compares to NASDAQ Composite Index's 47 percent of stocks that have declined by more than 20 percent from this year's high.
Unexpectedly low interest rates have caused Wall Street's negative strategists to change their initial forecasts. One of such is Gina Martin Adams of Wells Fargo Securities who held to her bearish expectations throughout last year's 30 percent rally in the S&P 500. However, she recently changed her forecasts to show that the S&P 500 would reach 2100 over the course of the next year. This would be a 5.8 percent increase compared to Friday's close, reports The Wall Street Journal.
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