The bull run in stocks may have further room for a stampede, according to Bradesco BBI’s head of equity strategy Ben Laidler. In a recent interview with Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid podcast, Laidler expressed optimism about the current market environment.
Laidler believes that the earnings recovery story is just beginning, and he sees the potential for two interest rate cuts from the Fed this year. This, coupled with expected strong earnings growth, could fuel further investor excitement and drive stocks higher. Laidler even suggested that stocks could potentially rise by at least 100% over the next five years.
The current bull market for stocks is said to have started in October 2022, with the S&P 500 reaching its most recent low. Since then, the index has surged by 55% and has continued to climb, reaching new record highs. The momentum has been driven by enthusiasm around AI, propelling tech giants like Nvidia and Apple to new heights.
As we head into earnings season, with banks like JPMorgan and Wells Fargo set to report, investors will be watching closely. FactSet predicts second-quarter earnings growth for S&P 500 companies at 8.8%, the highest year-over-year growth rate since early 2022. Double-digit earnings growth is expected in sectors like Communications Services and Information Technology.
Overall, Laidler remains bullish on the market, citing strong fundamentals and upcoming rate cuts. The outlook for AI stocks also looks promising, according to Goldman Sachs portfolio manager Brook Dane. With the market showing resilience and potential for further growth, investors may have reason to be optimistic about the future.
