Posted on 05/25/2022 3:47:05 AM PDT by EBH
While retail investors head for the exits as stock prices sharply fluctuate, Evercore ISI’s Julian Emanuel wants to put money to work.
He calls the market environment very ugly, but he believes the economy will avert a recession — particularly due to healthy credit markets and continued gains.
“The path to higher [stock] prices really is a function of being able to discount the macro news and focus on the fact that you’re still going to have mid-to-high, single-digit earnings growth,” the firm’s senior managing director told CNBC’s “Fast Money” on Tuesday.
His S&P 500 year-end target is 4,800, which implies a 22% jump from the Tuesday market close. Emanuel contends much of the market losses were driven by retail investors who were overexposed to growth stocks, namely in Big Tech.
“The bull case rests on essentially a drying up of the public selling of these stocks,” he said.
According to Emanuel, retail investors will return to stocks when they figure out employment remains strong and inflation is peaking. He expects that to happen later this summer.
“When things turn down, that will be a more benign environment for the equity markets,” said Emanuel.
His forecast also hinges on the benchmark 10-year Treasury Note yield cooling and ending the year at 3%. On Tuesday, the yield fell to its lowest level in more than a month.
Emanuel is most bullish on health care and sees solid upside for long-term investors. He’s also overweight in financials and industrials.
“The shift from growth to value is something that’s ongoing,” Emanuel said.
Video at link: 7:47
When that does not happen who gets fired.
The only way this economy will skip a recession is the same way obamas did....COOKED BOOKS!
Emanuel,... Put down the pipe
But communist movements/revolutions that kill or maim economies for indefinite periods are a different kettle of fish.
As has been said, the issue (Woke and all things related) isn't the issue...the issue is revolution.
LOL .
Pure BS .
Earlier this year, he said the S&P would hit 5500…now only 4800? (It’s currently at 3941)
I believe at some point before the 2022 elections, the Fed will juice the markets to keep the Globalists in power.
Is this like the transitory inflation? Irrational exuberance?
Or how bout this classic. The sub prime market will not necessarily affect the rest of the market.
Tell that to Venezuela asshole!
“The bull case rests on essentially a drying up of the public selling of these stocks,” he said.
When they are done selling, they have no money to reinvest dipshit.
This guy’s an idiot.
This guy is smoking some serious dope. I have access to a chart from January 2022 that projected where the S&P would be in the May 2022 time frame. In Jan, I thought, yea, but can it really get that bad? Well, the chart was lets say it was within 50 points of 3900.
Hindsight is 20-20. Very hard to invest this way. Very dangerous. Charts not always right. Still, it just happened to be a good chart huh? One of the latest charts I’ve seen suggests that S&P trades in a channel for a while. That makes a hell of a lot more sense than a sustained 22% rise and off to the races.
Stagflation, welcome back Carter!! Please be very careful out there.
Warren Buffet - “The stock market is a device for transferring money from the impatient to the patient”
I think what this guy is saying is basically this:
“I’m panicking. I think I’m going to lose everything in the coming recession. I’ve got to somehow convince people that this is a good time to buy so that I can unload all of my loser investments. Hey everybody! Things are great! Please buy my stuff! Please! I’ve got to get out of this market!”
To be fair, that was before Russia invaded Ukraine.
Economists have successfully predicted eleven of the last seven recessions.
Essentially talking his own book. Bill Gross was the master of it.
How’s the weather on his planet?
Well now we’re in “economists have called 9 of the last 3 bull markets” territory.
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