Oppenheimer Strategist Believes S&P 500 Could Gain 18% in 2021
According to Oppenheimer chief investment strategist John Stoltzfus, the S&P 500 could hit 4,300 by the end of 2021, according to MarketsInsider.
This surge would be more than an 18 percent gain from current levels. Stoltzfus initiated the price target on Monday on the back of the first US COVID-19 vaccinations and the potential for additional monetary policy.
Stoltzfus specifically stated that distributing several vaccines would show "material progress in reversing the societal and economic disruptions wrought by the pandemic since Q1 2020." Furthermore, he noted that interest rates would remain at historically low levels for the near future. These rates should be kept in place until the Fed feels confident in the trajectory of the US economy.
In addition to low rates, the Fed is utilizing "secular trends embedded in technology (robotics, algorithms) and globalization that are counter-inflationary while contributing to much needed relation to boost economic activity back to pre-pandemic levels."
Oppenheimer as a firm is currently overweight in US equities but also recommends a "meaningful exposure" to emerging markets.