John Stoltzfus urged investors to remain bullish despite this week’s wild market swings.
The Wall Street Bull, who is Oppenheimer Asset Management’s chief investment strategist, said he doubts the delta variant of Covid-19 and the Federal Reserve’s tightening concerns are triggering a significant downdraft.
“I not only think it can go up, but I think it can probably hit our target of $ 4,700 for the S&P 500 by the end of the year,” Stoltzfus told Trading Nation on Wednesday. from CNBC. “We wouldn’t bet against the American consumer.”
Its S&P 500 price target implies a 7% increase from current levels. The index fell 1.1% Wednesday to 4,400.27.
“What we are going through right now is quite natural as a transition period. We are coming out of the Covid situation,” Stoltzfus said. “The [Biden] the administration has now moved to have [booster] shots available for all adults from September 20th… Now that looks very positive for the economy and the reopening. “
But in the meantime, it looks like consumers are tightening their purse strings. The latest University of Michigan consumer confidence index fell to its lowest level since 2011. In addition, retail sales in July were weaker than expected.
Stoltzfus suggested it was premature to worry about the impact of delta on spending and slower growth.
“I’m not at all surprised that consumers are getting a bit of it,” he said. “This remains the main risk, but it looks like… we are heading towards a decrease in risk. And we think the market will recognize that shortly.”
He also said he expects the market to follow the Fed’s reduction plans in stride.
“Could we see some volatility? Oh, yeah,” he added. “But the volatility … would be manageable and digestible.”
Stoltzfus said he would use the weakness to buy stocks broadly. Its main strategy: a barbell approach that favors discretionary consumption, finance, industry and information technology.