The chief US equities strategist at Goldman Sachs Group Inc believes that the S&P 500 can keep climbing higher even amid geopolitical issues and volatile oil prices.
In a new CNBC interview, Ben Snider says that while the S&P 500 is hovering at record-high levels, the median stock in the index is still well below all-time highs.
“If you look at the S&P 500, we’re at an all-time high. But the median stock in the S&P is still about 13% below its own respective high. That’s one of the widest gaps we’ve seen in about 25 years, since the Dot-Com bubble. So it does raise some signs, perhaps yellow flags, looking at the market.”
Although the gap presents concerns about market breadth, Snider says current market conditions are different than what was witnessed during the Dot-Com era, noting that strong earnings are driving stocks higher.
“There are a lot of comparisons between today and what we saw in the market 25 years ago. But one of the key differences, in my view, is the importance of earnings in driving the current market. And what that means is, even though the equity market is at an all-time high, the P/E multiple today is still about 10% below where it was a couple months ago just because of that earnings tailwind.”
Recently, Snider predicted that the S&P 500 will soar to as high as 7,600 before 2026 expires. He also tells investors to keep a close watch on growth stocks and power infrastructure plays that could benefit from the massive AI spend.
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