Stock Groups

Recession won’t strike stocks despite ugly market


Retail investors are looking for exits when stock prices fluctuate sharply, but Julian Emanuel from Evercore ISI wants to make money.

He calls the market environment very ugly, but he believes the economy will avert a recession — particularly due to healthy credit markets and continued gains.

“The way to higher” [stock]Prices really are a function being able discount the macro news, and focus on how you still have low-to-mid-to-high earnings growth,” the senior managing director of the company told CNBC.Fast Money” Tuesday.

His S&P 500Year-end targets are 4,800 which results in a 22% increase from the Tuesday market close. Emanuel believes that many of the losses in market were caused by overexposed retail investors to growth stocks. Big Tech.

He stated that the bull case is based on “essentially a drying-up of public selling of these stock,”

Emanuel says that retail investors will return stocks if they find employment is stable. inflation is peaking. He believes that this will happen in the latter part of summer.

Emanuel said, “When things turn around, that will create a more favorable environment for the equity market.”

He also bases his forecast on the benchmark 10-year Treasury Note yieldThe year ended at 3% after cooling. The yield dropped to its lowest point in over a month on Tuesday.

Emanuel seems most bullish health careLong-term investors have solid upside, and he sees good potential. He is also overweight. financials industrials.

Emanuel declared that “the shift from growth towards value is something which’s ongoing.”