John Stoltzfus encouraged investors to remain bullish despite this week’s wild market volatility.
The Wall Street bull, who serves as the senior investment strategist at Oppenheimer Asset Management, said he doubts the Covid-19 Delta variant and concerns about tightening the Federal Reserve will trigger a significant downturn.
“Not only do I think he can climb to the top, I think he can probably reach our target of $ 4,700 for the S&P 500 by the end of the year,” Stoltzfus told CNBC’s Trading Nation on Wednesday. “We wouldn’t bet against the US consumer.”
His target price for the S&P 500 implies an increase of 7% from the current level. The index fell 1.1% on Wednesday to 4,400.27.
“What we’re going through right now is quite natural as a transition period. We are getting out of the Covid situation, ”said Stoltzfus. “The [Biden] Administration has now moved [booster] Recordings for all adults from September 20th … Now that looks very positive for the economy and the reopening. “
But in the meantime, consumers seem to be tightening their wallets. The University of Michigan’s current consumer sentiment index fell to its lowest level since 2011. In addition, retail sales in July were weaker than expected.
Stoltzfus said it was premature to worry about the delta impact on spending and the slowdown in growth.
“I’m not at all surprised that consumers took something back,” he said. “It remains the main risk, but it seems … we are moving towards reducing the risk. And we believe the market will recognize this shortly.”
He also said he expected the market to be largely calm about the Fed’s tapering plans.
“Could we see some volatility? Oh yes, ”he added. “But volatility … would be manageable and digestible.”
Stoltzfus said he would take advantage of the weakness to buy stocks on a broader basis. His main strategy: a barbell approach that targets consumer discretionary, financials, industrials, and information technology.
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