Wall Street’s new biggest bull is roaring like a bear. Chris Harvey of Wells Fargo Securities this week raised his year-end price target for the S&P 500 by about 20%. However, he is less enthusiastic about the path for market prices to rise. “It’s weird. It’s probably not a very good story, but even though we’re highly valued in the market, I feel bullish,” the company’s head of equity strategy said Tuesday on CNBC’s “Fast Money.” I can’t become one,” he said. “It’s not, ‘Wow, multiples are so cheap. Things are going to be great. The economy is on fire. The Fed is cutting rates and they’re going to start cutting rates tomorrow,'” Harvey said. He once said this about himself during a lecture. In an interview with CNBC, he raised his official S&P 500 target for 2024 to 5,535, saying he was “not a very positive person” on Monday. This represents an increase of about 6% from Tuesday’s closing price of 5,209.91. Mr. Harvey made his comments on “Fast Money” the day before the Department of Labor released its March Consumer Price Index report. He suggested that the economy is in a period of stagnation. Still, he thinks stocks can still rise, driven by big-cap technology and growth companies. “We don’t need strong economics for large-cap stocks because market share will change. The winners, the high-profit, high-growth companies will gain more market share,” Harvey said. “So if the winners keep winning, we don’t need that kind of growth and that’s what we’re counting on.” He recommends a balanced investment approach between now and the end of the year. . He prefers to focus on communication services and sees artificial intelligence as a secular story. “Growth is good if the status quo holds. That’s good for growth. It’s good for momentum and it’s good for large-cap stocks,” Harvey added. “If interest rates start to fall, what will do well? The unpopular ones: utilities, small-cap stocks, more leveraged companies.” Harvey’s S&P 500 target for the end of 2023 was 4,420. The index rose 24.2% at the end of the year to settle at 4,769.83.Disclaimer
Wells Fargo’s Chris Harvey reluctantly becomes the Street’s new biggest bull
