Read previewThe S&P 500's 22% tear over the last few months may just be getting started, according to Sevens Report Research, a market research firm with clients that include top Wall Street banks like JPMorgan, Morgan Stanley, UBS, and more.
On the valuations front, the S&P 500's multiple would only have to rise fairly slightly to lift the index to 6,000.
"The S&P 500 is already trading with an elevated forward P/E multiple of over 20X expected 2024 EPS," he said.
"If sentiment gets frothy, however, and stocks trade with a multiple pushing 22X, which is far from unheard of as the forward multiple of the S&P 500 hit 21.4 on 1/2/2022, then the S&P 500 could surpass 6,000 in H2'24."
Essaye also said small-cap stocks cyclical sectors like big banks, and materials and transportation firms would do well in a soft-landing scenario.
Persons:
—, Morgan Stanley, Tyler Richey, Richey, aren't, Louis Fed, Tom Essaye, Essaye, it's
Organizations:
Service, JPMorgan, UBS, Business, Investor, CNN, Federal Reserve, Nvidia, Amazon
Locations:
H2'24