According to a report from Bloomberg News, John Stoltzfus, the Oppenheimer & Co. chief investment strategist, still expects the S&P 500 to end the year at 5,330, which represents a whopping 40% from where it currently stands.
Stoltzfus doesn’t believe there’s going to be a recession, noting that “we might skirt it.”
While many strategists shifted from their ultra-bullish 2022 price targets for flatter projections, with S&P 500 down 21% YTD, Stoltzfus believes Fed is able to “check the pace of inflation,” and supply chains will loosen up.
He mentioned that S&P 500 dropped 25% from Dec. 31, 2008, through March 2009 on expectations that the Fed would fail in its efforts to get the economy back on track, however, the market rallied 64% from March 9th through the end of the year.
“So if we can get half of that as a rally, we would be close to our 5,330 target,” added Stoltzfus.