It was open season on stock market bears in October with the S&P 500 rising almost 8 percent last month. Gina Martin Adams, Equity Strategist for Wells Fargo Securities, said the bulls will likely continue to stampede throughout the rest of 2015 because seasonality favors stocks and this past earnings season is probably the worst of the worst for this cycle. ‘It looks to us like oil prices are stabilizing and that’s been the predominant reason why stocks have really struggled this year,’ said Adams. ‘As long as oil is stabilizing, earnings will probably get better heading into next year and you don’t want to fade that earnings recovery.’ Healthcare stocks were the market’s leaders in the first half of the year, but crumbled in the third quarter over worries about biotech valuations and drug pricing. Adams said she recently downgraded the healthcare sector to market-weight after four years at overweight. ‘We see tougher comparisons heading into next year, earnings growth rates will slow,’ said Adams. TheStreet’s Gregg Greenberg has details from New York.
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