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Another target price of 5200 points is released! This Wall Street tycoon accurately predicted a surge in U.S. stocks this year

2023-12-12

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Yet another Wall Street strategist predicts the S&P 500 will hit a record high in 2024. It is reported that he once accurately predicted the rise of U.S. stocks this year.

John Stoltzfus, chief investment strategist of Oppenheimer Asset Management, a veteran U.S. asset management institution, predicts that the S&P 500 index will close at 5,200 points next year, tying Fundstrat’s Tom Lee and becoming the current forecast on Wall Street. one of the highest goals.

The forecast means the index will average about 13% higher next year than where it closed on Monday.

A year of transition

"We expect 2024 to be a transition year, with markets experiencing what we expect is the Fed's shift from a restrictive monetary policy environment to an accommodative one," the strategist wrote in a note on Monday.

He said that "resilience" will once again become the keyword in 2024. Stoltzfus believes that despite the slowdown in economic growth, economic growth will not turn negative, and he believes that interest rate cuts will bring comfort to the market in the second half of next year.

At the same time, the positive trend in earnings in the past two quarters makes Stoltzfus believe that the performance of listed companies can also maintain a positive trend in 2024. He expects earnings to grow 9% to $240 per share by 2024.

"Eight out of 11 industries showed positive earnings growth, with four industries including communication services, information technology, consumer discretionary goods and finance achieving double-digit earnings growth," he said. "This is remarkable."

He believes that many "front-runners" in 2023 will lead again in 2024. Oppenheimer rates information technology, consumer discretionary and industrial stocks overweight through 2024.

So far in 2023, the technology industry has been the sector with the largest increase, with an increase of 50%, while the consumer discretionary industry ranks third with an increase of 34.1%.

Cautious about interest rate cuts

Finally, it is worth noting that Stoltzfus believes that recent market predictions that the Federal Reserve will cut interest rates as early as March are "overly optimistic." While the Fed hopes to avoid a recession, he believes the Fed will be cautious in ensuring that inflation continues its downward trend.

He expects the Fed to cut interest rates in the second half of next year, and possibly even in the fourth quarter if inflation becomes "stickier."

He said, "We are no longer in a crisis. This is not to say that once we are in a crisis or if the Fed feels that the economy is in recession, it will not cut interest rates. They will probably cut interest rates."

"But we don't think that's the case. We think consumers and businesses remain significantly resilient. Even though employment is starting to fall, the labor market remains resilient," he added.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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Another target price of 5200 points is released! This Wall Street tycoon accurately predicted a surge in U.S. stocks this year

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