As Wall Street grows more cautious, this analyst sees the S&P 500 surging over the next six months.
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00:00My outlook for the S&P 500 over the next six months is probably on the higher end. I've
00:05maintained 6,900. The S&P will get close to that, if not surpass over the next six months.
00:12I'm certainly one of the highest out there on the street, and I understand that. But
00:17I do believe some of the policies that are being implemented right now will pay massive dividends
00:23going into next year. And I think once we get some of the uncertainty that's out there regarding
00:29the trade issues, the tax bill passage, and we can move past that going into the fall,
00:36I believe that the earnings estimates are going to start going back up on the S&P for 2026. And
00:43I do believe the market will start recognizing that in the fourth quarter of this year. I think
00:50a lot of the pessimism is coming from just the reaction from the tariffs and what that's going
00:57to mean. Is it inflationary? Is the Fed going to cut? There's a lot of issues out there with the
01:02tax bill that people don't understand yet. And I think we're at a very high level of uncertainty
01:10out there. I think that's what's pushing interest rates up, and that's also creating an additional
01:14level of uncertainty. The term premium right now on the longer end of the bonds is at one of its
01:19highest levels it's been in in quite a while. And when you reflect on what's actually happening out
01:25there with all this policy change, it probably should be at an elevated level. But I believe
01:31as clarity comes into these markets on what the details of the trade policies are with these other
01:38countries and the effects that it could have on opening up U.S. business into areas of the global
01:44markets that have never been in, I believe that clarity will come into about these issues and on the
01:50tax bill going into the end of this year. And I believe that's going to give peace and an avenue
01:56for business leaders to really start investing their capital because they're going to know the playbook
02:02from there.