In the past week alone three big market “skeptics” tried to take center stage and herald their bearish forecasts. We’ll take a look at their arguments below. I’ve been on the record for months now that based on our analysis, equity markets should be higher in the future.

Skeptic #1: A high-profile hedge fund manager with an impressive long-term track record suggested that equity investors are likely headed toward a “lost decade” after suggesting “cash is trash” just five short months ago, weeks before the February 2020 high in the S&P. This conclusion is apparently based on a forecast that U.S. corporate profit margins are about to experience a sharp and sustained decline.

Yes, profit margins for 2Q20, and maybe 3Q20, will take an initial hit from their historically high levels as profits fall as a direct result of the self-imposed nationwide and global lockdowns. However, our research suggests that they will rebound sharply and will RISE in the coming year. According to our historical analysis, equity markets will likely reflect where things are going and not where they are now during this blip.

Skeptic #2: A notable value investor known for his historical bearish calls—not all correct—said: the U.S. stock market is in an unprecedented bubble th...

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