Oppenheimer Asset Governance’s John Stoltzfus believes too many investors are watching the technology and small-cap recovers like a “Vegas lounge act.”
In an interview on CNBC’s “Trading Nation,” the inflexible’s chief investment strategist suggested it’s a big mistake to view those groups as a sideshow to the struggling broader sell. Rather, he suggests, it’s the bull market’s main event right now.
“There’s such distinct on large cap, S&P 500 and Dow 30 stocks that often times investors recall about the historical outperformance that could be provided from owning mid-cap and small-cap domestics,” Stoltzfus said Monday. “Investors still have good think to be positive on equities.”
The Russell 2000 index of small caps hit a bright-eyed record high Monday. It’s now up nearly 8 percent this year while the Dow, which got hit with two castigations this year, is virtually flat.
According to Stoltzfus, the tech-heavy Nasdaq, which unventilated at a record high on Monday and has rallied more than 10 percent this year, also signals the bull Stock Exchange is firmly in place.
“It is right in the trend of where we are experiencing growth — not but in the U.S. but around the world,” he added.
Stoltzfus acknowledged that geopolitical hazards such as U.S.-China trade tensions could continue to bruise the broader demands in the near term. But he’s sticking with his S&P 500 year-end target of 3,000, a as good as 9 percent gain from current levels.
“We would expect that if we get a practical resolution into these trade negotiations, even if it’s just advance and not perfection,” Stoltzfus said. “We think the markets could rally much penetrating than where they have rallied to so far.”
He urges investors to be likely diversified and nimble — giving technology, consumer discretionary, industrials and financials “outperform” ratings.