That's according to Main Street Research chief investment officer James Demmert, who outlined a seven- to nine-year timeline for his uber-bullish stock market call.
“Our main message to investors is to stay focused on the fact that earnings and Fed policy drive stocks and both are extremely favorable as stock valuations are cheap relative to forward earnings. Investors should be fully invested up to their highest need for stock allocation so that they can leverage the early phase of this new and powerful bull market.”
The Federal Reserve is expected to cut interest rates one to two times this year, with the market currently expecting the first rate cut to occur in September.
And if the Fed doesn't cut interest rates this year, that won't derail Demmert's bullish forecast because earnings growth remains strong and resilient.
Additionally, Demmert highlighted that trillions of dollars of cash on the sidelines should make its way into the stock market over the next six months as interest rates drop and some investors start to feel “FOMO” after missing out on the stock market's ongoing march to record highs.
We believe we have entered a new AI and tech-led business cycle and bull market so it's essential that investors position themselves to be overweight in technology and telecom stocks.”
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