While individual investors are looking for an exit as stock prices fluctuate, Evercore ISI’s Julian Emanuel wants to invest the money.
He says the market environment is very ugly, but he believes the economy can avoid a recession thanks to a particularly healthy credit market and sustained profits.
“The road to a higher place [stock] The company’s managing director told CNBC’s “Fast Money” that “price is actually a feature that will discount the macro news and focus on the fact that it will continue to see medium to high single-digit revenue growth.” on tuesday.
His S&P 500 year-end target is 4,800, up 22% from Tuesday’s close. Emanuel asserts that most of the market losses were caused by individual investors overexposed to growth stocks, or Big Tech.
“The bull case will essentially depend on the exhaustion of public sales of these stocks,” he said.
According to Emanuel, individual investors will return to stocks when they know employment is solid and inflation is peaking. He expects it to happen later this summer.
“If things get worse, it will be a better environment for the stock market,” Emanuel said.
His forecast will also depend on the benchmark 10-year Treasury bond yield cooling and closing the year at 3%. On Tuesday, yields fell to their lowest level in more than a month.
Emanuel is the most optimistic about health care and sees a clear upside for long-term investors. He is also overweight in finance and industry.
“The transition from growth to value is ongoing,” Emanuel said.