These bullet points were from a (much longer) Merrill Lynch research piece last week.
“With most of our market indicators flashing green, we address the bear cases below to either debunk them or provide evidence that the risks are priced into stocks.”
1. “The 5-year bull market is long in the tooth”
2. “Everybody’s bullish – it’s time to sell”
3. “Valuations are too high”
4. ”Margins are peaked and poised to collapse”
5. “Higher rates are bad for equities”
6. “The Fed is about to take the punch bowl away”
7. “Europe continues to ail”
8. “China is a disaster waiting to happen”
9. “Dysfunction in Washington DC is spiraling out of control”
10. “Geopolitical tensions are running high”
They then proceed to make a good effort taking each of these items apart.
I cannot post the PDF as its copyrighted work product — but you should dig up a copy . . .
2014: Debunking the bear case
BAML Equity and Quant Strategy
26 November 2013