Opening Statement from the November 2015 Intelligent Investor

Opening Statement from the November 2015 Intelligent Investor

Originally published on November 5, 2015 (pre-market)

The US stock market has recovered from its largest selloff in four years, largely as we expected. However, the rebound was a bit more rapid than we expected. I think it’s fair to say that the intensity of the rebound took everyone by surprise.  Accordingly, the stock market recorded its best October performed since 2011.

The big question is whether the rally has been justified by improving earnings estimates. While earnings have come in a little better than previously estimated, Q3 is still on track to report a year-over-year earnings decline.

You will recall from the US Stock Market Forecasting presentation from October that we were fairly confident that the Dow Jones would rally to 17,500. We also stated that even 18,000 was possible. However, we felt that the market