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Tony Dwyer believes it’s wrong to anticipate a major stock market pullback.
According to the Canaccord Genuity chief market strategist, the environment is not conducive for another correction.
“You’ve got a Fed that has taken a dovish pivot, inflation is coming down [and] the first quarter is going to likely see a trough in earnings,” he said Monday on CNBC’s “Trading Nation.” “It’s actually kind of a good setup.”
He contends Wall Street is overemphasizing yield curve inversion risks, the negative impact of the global growth slowdown and is too worried about an earnings recession. Dwyer doesn’t see the issues contributing to a damaging sell-off.
“I can see us grinding higher here — maybe going into a pause where we have down a 2% day, a la two weeks ago,” he said.
Even though Dwyer is urging investors to put major sell-off fears on the back burner, he’s not predicting robust upside either.
His S&P 500 year-end price target is 2,950, less than a 2% gain from current levels.
Dwyer’s market prediction may feel particularly anemic because he’s known for his mega-bullish calls. In the past few years, his year-end price targets have been among the highest on the Street.
His advice to investors: Treat every pullback as a buying opportunity.
Dwyer is overweight technology, industrials and financials.
