Dow 30,000 may just be the beginning.
Oppenheimer Asset Management’s John Stoltzfus believes the Dow’s record high on Tuesday is justified despite the nation’s battle against surging coronavirus cases.
He lists a resilient economy as the major factor for optimism.
“Very simply, the fundamentals are improving and prospects for them to improve further appear likely,” the firm’s chief investment strategist told CNBC’s “Trading Nation.”
Stoltzfus also cites vaccines advancements, less uncertainty surrounding Washington’s post-election government makeup and better-than-expected third quarter earnings for his positive outlook.
It’s a stark departure from his view about nine months ago. Stoltzfus was one of the first mainstream Wall Street strategists to warn investors about the pandemic.
In late February, he told “Trading Nation” there was nowhere for investors to run. About a month later, he abandoned his S&P 500 year-end target of 3,500.
Now, he sees market momentum dominating the market. He believes it will prevent any near-term profit-taking from getting out of hand — even if Georgia’s Jan. 5 Senate run-off results in a unified federal government.
“At that point, you might see a pullback in the areas of 6% to 10%,” Stoltzfus said. “But it would be recoverable by fiscal policy.”