While the stock market gets rocked by intense bouts of volatility, one of Wall Street’s biggest bulls refuses to be swayed.
Oppenheimer Asset Management’s John Stoltzfus believes the downturn is in its final days and predicts the S&P 500 could surge by almost 13 percent from Wednesday’s close.
“We think stocks will work their way to 3,000 by the end of the year,” the firm’s chief investment strategist said Wednesday on CNBC’s “Trading Nation.” “We are looking for another good year.”
That’s the same S&P 500 target he issued just before 2018 began. The concerns driving stocks into correction territory didn’t push him into the bear camp in February, and they aren’t doing so now. He believes the issues are temporary.
“The market is likely to calm down once it gets a good signal of some resolution that’s livable within the trade area, and we get to see the effects of tax reform come on board,” Stoltzfus said.
According to Stoltzfus, the uncertainty will likely be swept away by a strong first quarter earnings season, which starts a week from Friday.
“We’ve had five or six quarters in a row now with earnings expanding. We should see an increase in earnings growth coming up,” said Stoltzfus, who contends market and economic fundamentals remain solid.
His latest thoughts came as the S&P 500 and Nasdaq were battling back from a deficit of more than 1 percent — ultimately closing in positive territory. The Dow did the same thing with a 2 percent early daily loss.
Stoltzfus, who’s overweight U.S. equities, predicts financials, technology, industrials and consumer discretionary stocks will help lead the market back to historic highs.
