At Extreme Investor Network, we are always on the lookout for the latest trends and insights in the world of finance. Today, we bring you a comprehensive analysis of the stock market’s highs and what to expect in the coming years.
According to Oppenheimer’s Ari Wald, stock market highs are expected to continue into 2025. In a recent note, Wald highlighted strong market breadth and healthy signs across various sectors such as industrials, financials, and technology. These key sectors look resilient, pointing towards a bullish trend in the market.
What sets this potential continued growth apart from previous cycles is the supportive market breadth. Over 60% of stocks on the New York Stock Exchange are above their 200-day moving average, indicating a healthy sign for the market’s advance. This statistic suggests that the market gains are not solely driven by a handful of mega-cap tech companies, making it a more sustainable growth scenario.
A chart of the S&P 500 provided by Oppenheimer shows that traders can consider buying last week’s breakout to new cycle highs, with a stop-loss set at the 5,650 level. This risk management tool automatically sells a security when a certain price is reached, helping traders mitigate potential losses. With Wald’s upside price target of 6,000 in the first half of 2025, the potential upside is 5% compared to a potential downside of just 1%.
Looking ahead, Wald’s analysis suggests that the S&P 500 could reach the 7,000 level by the end of 2025 if it follows the path of the average bull market cycle. This aligns with a bullish prediction from Evercore ISI, indicating that the AI craze could further push stocks higher in the upcoming years.
Moreover, Wald emphasized the positive leadership making new highs in sectors like industrials, technology, and financials. These sectors show signs of resilience and strength, further supporting the overall bullish trend in the market. Even lagging sectors like healthcare are rallying, indicating the broadness of market breadth and the potential for continued growth across various sectors.
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