'$5,500 is our 2024 year-end call for the S&P 500' - Stoltzfus
‘We are ramping up our year-end target price for the S&P 500 to $5,500 from $5,200,’ says John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, to IGTV’s Angeline Ong.
Stoltzfus also explains why much of this is linked to a shift in investor mindset and perception of the US economy.
(AI Video Summary)
Consumers will still worry about inflation, but the manufacturing sector will stay strong
In this video interview, John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, talks with IGTV's Angeline Ong about what to expect in the upcoming week in terms of key data points. He believes that consumers will still be worried about inflation, and they now think that it will stick around for longer. On the flip side, the manufacturing sector seems to be holding up well. The Federal Reserve has been careful with its rate hikes, raising them 11 times but also taking breaks six times. This approach has managed to bring inflation down without hurting the overall economy or causing a recession.
Increasing his expectations for the stock market
Moving on to the stock market, Stoltzfus has a track record of making accurate predictions. He previously correctly predicted the Dow Jones level at the end of last year. Now, he is increasing his year-end target price for the S&P 500 from $5,200 to $5,500. He is also raising his earnings projection for the S&P 500 in 2024. This is because companies surprised everyone with their strong earnings in the third and fourth quarters of last year. Only a few sectors showed weakness, while others, like technology, consumer discretionary, and financials, had impressive double-digit earnings growth. This shows that the economy is tough, and John is adjusting his expectations accordingly.
China and US meeting
Stoltzfus then talks about the tech sector and mentions that the NASDAQ has been doing well. However, he also sees some signs that it might be getting tired in technical terms. The conversation then moves to an important meeting between the US and China, which will be held in Beijing. Stoltzfus believes that the two sides will have significant differences, comparing it to a chess game. Nevertheless, he thinks that the fact that they are meeting is a good sign. It suggests that there is a chance for a breakthrough or some progress to be made. He also takes into consideration the upcoming US election and how it could affect the situation.
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