A senior strategist at Oppenheimer told CNBC that the recent rally on Wall Street looks set to continue as investors are less skeptical of the negative outlook for the US economy. He thinks investors are becoming more confident and notes that since October 12 the S&P 500 is up 12 per cent.
“You have some value, you have more growth, plus defensive and cyclical investment opportunities. It looks like investors are coming back. So we think the recent rally is likely to continue.
The rally in the stock market was a result of the Federal Reserve signaling that it will reduce the pace of interest rate increases soon and the inflation numbers seem to be improving. The Oppenheimer strategist said the rally shows recession fears may be waning.
I think recession is priced
“We think the stock market has really benefited from the recession to a great extent,” Stoltzfus said.
The strategist added that it is “very likely” that stocks will return to the bull market after falling so much earlier this year. He pointed out that consumer goods and technology are among the sectors that can rebound again after the difficult year 2022.
The S&P 500 Oppenheimer target is 4,000 points. The index is trading around that level, and Stoltzfus said Friday that the index is likely to end 2022 above its target.
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