A senior Wall Street strategist is making one of the boldest market calls of the year, predicting the S&P 500 will shatter 8,000 before 2026 expires.
In a new Schwab Network interview, Jim Thorne, chief market strategist at Wellington Altus Private Wealth, says the signal to go risk-on has already fired, and that investors who miss what comes next will find it difficult to catch up.
“When the yield on the 10-year failed to breach 4.50% and started to reverse, that was the signal to go risk on. So that was late March. We’re going to 8,000 by the end of the year.”
Last week, “Big Short” investor Steve Eisman warned that equities tend to sell off when the 10-year Treasury (US10) yield jumps to 4.5%. At time of publishing, the US10 yield is trading at 4.29%.
Thorne also says the macro backdrop is one of the most compelling setups in decades, pointing to the possibility of a peace dividend as the catalyst that could unlock a generational bull market.
“If we get a peace dividend, what does that do for global macro risk-taking? You’re starting to hear some people start to mention the fact that we could be in front of 18 to 24 months of the strongest markets in a generation. If we get energy down, rates are down, and then the global risk premium goes down because state-sponsored terrorism is eliminated. We could be at very lofty levels by 2028.”
Amid the bullish macro setup, Thorne says two asset classes will likely leave others in the dust.
“If we were putting a thousand dollars to work, I would say you want to buy tech, and you want to buy crypto because those are the areas that have been left behind and are going to have a frenetic catch-up trade…
What are the banks going to do when they embrace crypto? What is this place going to look like when we have tokenization of assets? We’re in the forefront of a major technological wave that I just don’t think people can get their brains around.”
Photo by fabio Spano on Unsplash
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