Market melt-up to persist due to social security benefit risks
Wall street continues to defy gravity. One area of support for equities comes from investors close to retirement.
John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management says investors are looking to invest in stocks for retirement purposes at a time when it is projected that US social security benefits could be at risk of being reduced in the not-too-distant future. Stoltzfus explains the ramifications of this to IG’s Angeline Ong.
(AI Video Summary)
Despite 11 rate hikes since March 2022, the U.S. economy has avoided recession, supported by strong consumer and business resilience. Improved earnings and increased equity allocations by Americans concerned about future Social Security reliability are driving market momentum. Stoltzfus also touched on sector diversification and the significant influence of potential long-term AI innovations on market efficiency and profitability. With ongoing political events like elections, market dynamics could shift based on fiscal policies favored by winning parties. Stoltzfus's firm forecasts a year-end S&P 500 target of 5,500, emphasizing the resilience of U.S. equities in face of rate hikes and political changes.
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