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Market bounce is believable and record 2022 is ahead: Oppenheimer

Market bounce is believable and record 2022 is ahead: Oppenheimer

A prime strategist suggests the market is settling down.

Regardless of Covid-19 omicron dangers, Oppenheimer Asset Administration’s John Stoltzfus suggests Tuesday’s market bounce is actual.

“We believe in it. We think investors should as well,” the agency’s chief funding strategist instructed CNBC’s “Trading Nation.” “The selling that we’ve seen over the last few days was overdone.”

Based on Stoltzfus, the month’s destructive headlines surrounding the omicron variant and the Federal Reserve’s tightening plans flushed out traders with weak palms.

“Hopefully, next year the Covid-19 and its nasty variants move into the rear-view mirror,” he mentioned. “We also expect to see the Federal Reserve successfully manage the process of tapering.”

The S&P 500 closed up 1.8% to 4,649.23 on Tuesday. It is now 2% under its all-time excessive of 4,743.83, hit on Nov. 22. However the index is up 1.6% thus far this month and up 23% for the yr.

“Fundamentals are getting better going forward,” mentioned Stoltzfus, a long-term bull. “Stocks are responding to that fact.”

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His 2022 year-end S&P 500 forecast is 5,330, a 15% leap from present ranges.

Stoltzfus sees improved earnings forward and lists data know-how, client discretionary, financials and industrials as the most important beneficiaries.

“You’re going to find that in the cyclical sectors as well as in technology,” mentioned Stoltzfus, who expects the improve cycle for companies and customers to speed up.

On Tuesday, the tech-heavy Nasdaq additionally staged a rebound. It jumped 2.4% to shut at 15,341.09. The index is nonetheless destructive for the month, down 1.3%.

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