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
Fed has no control to juice markets BEFORE inflation drops below 6%.
Incumbent Politicians won’t allow FED to keep inflation at 8% during election.
Inflation affects everyone, stocks affect mainly frequent traders.
Well, I figured everyone needed the good laugh this morning.
I read this and was ....he is in for a surprise when the unicorns come home to roost.
MSLSD. Consider the source.
Why not say it will jump 50 percent! LOL! Not with the current anti growth policy dictated by the DC crowd!
thanks
I believe the oft used term for this is “dead cat bounce”.
It is true that the market has always gone up in the long term. Many investment advisors would say if that ever changed, we will have more to worry about than our money anyway.
I think it will hit 4200....before it goes to 1800... or 1600. That is a normal price occurrence that happens as well.
I’m thinking we’ll see a “new high” in about 4-6 years.
HA!HA!HA!HA!HA!HA!
Is it safe to assume the state in which this author lives has legalized recreational marijuana?!?
Hammer meet nail.
“The bull case rests on essentially a drying up of the public selling of these stocks,” he said.
—
Stocks will go up when they stop going down. Deep analysis.
I am more inclined to think that the Gummint will find a reason to print more free money and Wall St. will take its cut off the top.
Remember 2008 and the car industry buy-out and the mortgage collapse?
Free money, baby.
“Remain calm, all is well.”
Is the Biden junta going to allow drilling again? MALA
“Julian Emanuel”
Uncommon surname spelling.
Any relation to Rahm Emanuel?
Where’s the “yeah, right” girl meme?
Me, I put all my 401k stuff into their “stable value” fund. Gonna let it sit there for a while.
We are already in a recession. I work for a big-box retailer that has been doing very, very well. We are in an extremely prosperous area that historically has avoided the worst economic downturns. But now my store is virtually empty. People are not shopping the way they were even a few months ago.
I hope he’s not betting the cookie jar money on it.
**Any relation to Rahm Emanuel?**
If not blood relation, likely politically the same family.
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