BMO’s Brian Belski says the stock market has dodged an “earnings apocalypse” after the third-quarter results were revealed, and he believes this could lead to more gains for stocks in the final months of the year. Brian Belski, the Chief Investment Strategist at BMO, has outlined three factors that are likely to contribute to the stock market continuing its upward trajectory as we head into the end of the year. Despite the ongoing rally in stocks, Belski notes that there is still a lot of pessimism among investors. This negativity, he believes, will serve as fuel for the market as stocks are poised to “climb the wall of worry” heading into the end of the year. Belski is optimistic about the market and believes that the path of least resistance for stock prices is higher through year-end, based on the strong start to 2023 and the resilience of corporate earnings that have been somewhat overlooked by investors. He points out that 94% of S&P 500 companies reported third-quarter earnings results, with 83% beating profit estimates, which is higher than average. Belski believes the solid earnings are setting the stock market up well for continued gains over the next few months, especially thanks to a seasonal tailwind during the last two months of the year and a marked improvement in stock market breadth. He notes that the increased number of outperforming S&P 500 stocks is an encouraging sign for the stock market rally. Overall, BMO’s Brian Belski is bullish on the stock market’s prospects in the coming months.
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