FinancialfocusHub.com
  • Home
  • Crude Oil
  • Cryptocurrency
  • Forex
  • Funds
  • Gold
  • Insurance
  • News
  • Stocks
No Result
View All Result
  • Home
  • Crude Oil
  • Cryptocurrency
  • Forex
  • Funds
  • Gold
  • Insurance
  • News
  • Stocks
No Result
View All Result
FinancialfocusHub.com
No Result
View All Result
ADVERTISEMENT

Top Strategist Sticks With Prediction For 22% Stock Surge As Trade War Roils Markets

Alice by Alice
2025-04-14
in Stocks
Top Strategist Sticks With Prediction For 22% Stock Surge As Trade War Roils Markets
ADVERTISEMENT

Despite the market volatility, Craig Johnson isn’t giving up on his bullish view on the S&P 500.

The Piper Sandler strategist said he still expects the S&P 500 to surge to 6,600 by year-end.

ADVERTISEMENT

“When people are selling, you have to clean up,” Johnson said.

ADVERTISEMENT

One Wall Street strategist was unmoved after President Donald Trump’s “Liberation Day.”

ADVERTISEMENT

The stock market just experienced its worst two-day selloff since March 2020, when the global economy was on the verge of shutting down due to the COVID-19 pandemic.

The S&P 500 fell more than 10% in two trading sessions, and Wall Street was abuzz with worst-case scenario predictions. Strategists at major Wall Street banks warned that Trump’s sky-high tariffs would lead to an imminent recession and lower stock market returns.

But Craig Johnson, chief market technician at Piper Sandler, thinks this is an opportune time to reiterate his view that the S&P 500 will hit a new high of 6,600 by the end of the year.

That represents a potential upside of 22% from Friday afternoon’s levels.

In his note to clients titled “Don’t Stop Believing,” Johnson reiterated his bullishness on stocks despite the volatility fueled by Trump’s trade tariffs.

This week, Business Insider caught up with Johnson to get a better idea of ​​why he’s sticking with one of Wall Street’s highest price targets.

It’s Only April

First, Johnson was quick to point out that “it’s only April,” giving the stock market plenty of time to digest recent losses, consolidate, and then move higher.

“I feel like we should give this market some time,” Johnson said. “The market is very volatile and if we start to see a more rational trade environment play out, then this market will certainly see multiples come back and earnings revisions may not be as high as people expect.”

Johnson’s positive view depends on whether the Trump administration will roll back some of its tariffs, a view that was on display on Wednesday when Trump announced a 90-day “reciprocal” tariff suspension for most countries.

Stocks rose about 10% after the announcement.

“We just had one of the best periods of market performance since World War II and I don’t think anyone expected the market to be this volatile, but ultimately, I think there’s probably still room for the market to rise further,” Johnson said.

Investors are too negative

Investor sentiment has fallen sharply in the past few weeks, which has strengthened Johnson’s confidence that the stock market is about to rebound.

The CNN Fear and Greed Index fell to 4 last week, the second lowest level in history, behind only two readings in March 2020.

Another sentiment indicator, the American Association of Investors Investor Sentiment Survey, also showed that investor pessimism is at an extreme level, second only to the 2008 financial crisis.

“Negative sentiment is just too high,” Johnson said, highlighting recent flow data showing investors are selling stocks and buying money market funds.

Johnson said when negative sentiment reaches such extreme levels, it often becomes a contrarian indicator that stocks are about to rise.

“If you’re emotional in the market, you’re going to lose money every time,” Johnson said. “You can’t be emotional, you have to be in, you have to do this, when people are selling, you have to go in and pick up the pieces.”

Technical Setup

From a technical perspective, Johnson still sees a lot to appreciate, even against the backdrop of trade turmoil.

First, the S&P 500 fell all the way to 4,835 in premarket trading this week. That’s significant because it tested a previous resistance level as support, a key tenet of technical analysis.

The S&P 500 peaked at 4,818 in January 2022. Price memory at that level triggered a flood of buyers into the market.

“That’s a pretty good support level,” Johnson said. “I mean, I don’t know if you could ask for anything more perfect than this. Sentiment, our indicators, support levels, everything is being precisely controlled; I mean, it’s almost down to the penny.”

Johnson also highlighted that the stock market is showing signs of being extremely oversold, which usually indicates a strong rebound.

Of all the stocks that Johnson covers, only 5% are trading above their 40-week moving average.

“I will tell you, I don’t see numbers that low very often,” Johnson said. If the number rebounds sharply, it would indicate that the deeply oversold levels are improving, which would be positive news.

Ultimately, the technical strategist expects the S&P 500 to test resistance at 5,500 and then, if successful, could get stuck in a sideways trading range between 5,500 and 5,800.

“We’re ultimately just adjusting for a while until people fully understand how the trade situation is going to play out,” Johnson said.

Any clarity on trade policy and a potential deal could ultimately help to dispel uncertainty and drive stocks to new all-time highs by the end of the year.

“I keep saying, don’t give up on believing, because when markets get hammered like this, they’re going to get hammered,” he said. “But when you get down to these levels, you have to buy stocks.”

Related topics:

  • How to Buy Steel Stocks
  • How to Sell Stocks
  • How to Analyze Bank Stocks
ADVERTISEMENT
Previous Post

Tesla Shares Fall As China Pulls Out And Launches Cheaper Cybertruck Model

Next Post

Emerging Markets Face Heavy Blow From Tariff Storm

Alice

Alice

Related Posts

UK Economy Poised For Rapid Growth Despite Tax And Tariffs
Stocks

UK Economy Poised For Rapid Growth Despite Tax And Tariffs

2025-05-15
What Are Value Stocks: A Comprehensive Guide For Investors
Stocks

What Are Value Stocks: A Comprehensive Guide For Investors

2025-05-15
Trump’s Mideast Trip: Us Tech In Post-Oil Era
Stocks

Trump’s Mideast Trip: Us Tech In Post-Oil Era

2025-05-14
What To Watch Next In The Bond Market
Stocks

5 Key Characteristics Of Stocks Suitable For Day Trading

2025-05-14
What Are Core Stocks? A Detailed Guide To Core Stocks
Stocks

What Are Core Stocks? A Detailed Guide To Core Stocks

2025-05-14
Stock Buy Price & Sell Price: Differences And Influencing Factors
Stocks

Stock Buy Price & Sell Price: Differences And Influencing Factors

2025-05-14
What Does VWAP Mean In Stocks? A Complete Guide
Stocks

What Does VWAP Mean In Stocks? A Complete Guide

2025-05-14
How To Invest In International Stocks: A Step-By-Step Guide
Stocks

What Are The Advantages And Disadvantages Of Common Stocks?

2025-05-13
How To Trade Forex With Metatrader 4
Stocks

5 Steps To Buying Fintech Stocks

2025-05-13
Next Post
Stocks8

Emerging Markets Face Heavy Blow From Tariff Storm

What Analysts Are Saying About Netflix Ahead Of Earnings Release

What Analysts Are Saying About Netflix Ahead Of Earnings Release

Netflix, Goldman Sachs, Citigroup And Other Stocks To Watch This Week

Netflix, Goldman Sachs, Citigroup And Other Stocks To Watch This Week

Popular Articles

car Insurance1
Insurance

Transfer Car Insurance Easily: A Complete Guide

by Alice
2025-05-12

Transferring car insurance may seem daunting, especially when buying or selling a car, moving to another state, or switching insurance...

USD vs USDT: Key Differences Explained Clearly

USD vs USDT: Key Differences Explained Clearly

2025-05-08
How To Read Forex Charts: A Beginner’s Guide

How To Read Forex Charts: A Beginner’s Guide

2025-05-12
Moderna Price Ends Cautiously Higher

Moderna Price Ends Cautiously Higher

2025-05-10
How Does Car Rental Fit In With Insurance? A Complete Guide

How Does Car Rental Fit In With Insurance? A Complete Guide

2025-05-14
What Is the Penalty for Not Having Health Insurance in New York?

What Is the Penalty for Not Having Health Insurance in New York?

2025-05-13
Insurance16

10 Factors That Affect Life Insurance Premiums

2025-05-12
How Much Is Trintellix Without Insurance?

How Much Is Trintellix Without Insurance?

2025-05-09

Recent Posts

UK Economy Poised For Rapid Growth Despite Tax And Tariffs
Stocks

UK Economy Poised For Rapid Growth Despite Tax And Tariffs

by Alice
2025-05-15

The UK economy grew faster than anticipated in the first three months of 2025, providing a positive boost to Chancellor...

What Are Value Stocks: A Comprehensive Guide For Investors

What Are Value Stocks: A Comprehensive Guide For Investors

2025-05-15
A Beginner’s Guide To Changing Your Car Insurance

A Beginner’s Guide To Changing Your Car Insurance

2025-05-15
Insurance20

What Is Products Liability Insurance? Comprehensive Guide

2025-05-15
How Much Is $1 Worth Now? Learn About The Foreign Exchange Market

When Do USD Decisions Come Out? Key Dates & Impact On Forex Market

2025-05-15
Cryptocurrency8

How To Buy Crypto With USD: A Step-By-Step Guide

2025-05-15
China’s Inclusive Finance: Powering Innovation in the New Quality Productive Forces

China’s Inclusive Finance: Powering Innovation in the New Quality Productive Forces

2025-05-14
RMB Strengthens as China-U.S. Trade Tensions Ease

RMB Strengthens as China-U.S. Trade Tensions Ease

2025-05-14

Cryptocurrency

Cryptocurrency27

NFT Marketplace X2Y2 to Shut Down After Three Years as Trading Volume Plummets

2025-04-04
Cryptocurrency

Elon Musk Denies U.S. Government Plans to Use Dogecoin, Cryptocurrency Drops 3%

2025-04-01
Cryptocurrency

Gold Bull Peter Schiff Bets on Bullish Gold Amid Bitcoin’s Struggles

2025-03-30
Cryptocurrency

Fidelity Plans to Launch Spot Solana ETF

2025-03-29
Cryptocurrency

BlackRock Launches Bitcoin ETP in Europe: A Key Step for Institutional Adoption

2025-03-28
Cryptocurrency

Closing Bell Movers: GameStop Gains 7% on Earnings, Bitcoin Announcement

2025-03-27
FinancialfocusHub.com

FinancialFocusHub.com is your gateway to insightful financial guidance and strategies. Explore expert advice on investing, saving, and managing wealth. Stay informed with the latest trends and tools to empower your financial journey.

Recent Posts

  • UK Economy Poised For Rapid Growth Despite Tax And Tariffs 2025-05-15
  • What Are Value Stocks: A Comprehensive Guide For Investors 2025-05-15
  • A Beginner’s Guide To Changing Your Car Insurance 2025-05-15
  • What Is Products Liability Insurance? Comprehensive Guide 2025-05-15
  • When Do USD Decisions Come Out? Key Dates & Impact On Forex Market 2025-05-15

TAGS

Useful Links

ABOUT US

Disclaimer

Privacy Policy

Copyright © 2024 financialfocushub.com

No Result
View All Result
  • Home
  • Forex
  • Insurance
  • News
  • Stocks

Copyright © 2024 FinancialFocusHub.com is your gateway to insightful financial guidance and strategies. Explore expert advice on investing, saving, and managing wealth. Stay informed with the latest trends and tools to empower your financial journey.