David Hunter, chief macro strategist at Contrarian Macro Advisors, thinks the stock market could be on the verge of a “historic” rally.
In a new one interview Along with journalist David Lin, Hunter outlines the catalysts he believes will cause a jump in stock prices.
“Part of the melt-up will be lower rates. I think we will start to recognize again that inflation is on a downward trend and moving towards the 2% target, so that will be welcomed. I think you’ll see that revenues appear to be increasing, so you’ll see higher revenue expectations over the course of the next six months and estimates for next year starting to be raised.”
The macroeconomic expert also thinks a market turnaround will force the entry of investors who have been waiting on the sidelines hoping for a bigger drop in stock prices.
“So you get FOMO (fear of missing out). There is a lot of skepticism: people didn’t believe the market when it went from 3,500 to 4,600, and when it went back to 4,100 last October, they didn’t believe the market. I didn’t jump on that. They only jumped on it and started jumping on it again when it reached new highs.
The S&P 500 Index is trading at 5,180.74 at the time of writing, according to Market overview.
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