The stock market might have stumbled Wednesday, but it will soon resume its 3 ½-year rally, says Tony Dwyer, chief equity strategist at Canaccord Genuity investment bank.
Indeed, he tells CNBC the Standard & Poor’s 500 will hit 1,575 by year-end. That would represent a 10 percent gain from Wednesday’s close of 1,433. The index dipped 0.6 percent Wednesday.
Dwyer sees a correction to last for a bit first, sending the S&P 500 to 1,400, “but at the end of the day, we’re in the economic sweet spot,” he maintains.
Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.
“Everybody keeps clamoring for this great economic data. It comes with tightening monetary policy. It comes with tightening credit standards. It comes at the end of an economic cycle.”
The economy grew 1.3 percent in the second quarter.
“We’re at the point where we’re still coming off this historic low and trending better, and I think that is very positive,” he said, referring to the Great Recession of 2007-09.
The Federal Reserve’s easing moves are boosting the economy, which in turn is boosting earnings, Dwyer says.
But not everyone is convinced.
“The fear is that this is going to be a really bad earnings season,” Hank Smith, chief investment officer at Haverford Trust, tells Bloomberg.
“If S&P 500 earnings come in better than expectations, the markets are going to view that positively. We’re off to a good start, but we’ve got a long way to go.”
Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.
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