Good Morning,
I hope everyone had an enjoyable weekend! It was an exciting couple days in college football with the playoff bracket now finalized. Who do you have winning it all?
Markets look to continue last week’s momentum with new record highs in sight. Recent jobs data was mixed while the Fed’s preferred inflation gauge (PCE) came in lower than expected. This set-up has helped broaden out the market and has more less guaranteed a 0.25% interest rate cut this Wednesday. While I think this cut has already been priced in, how Fed Chair Powell discusses the path forward will be heavily scrutinized. 2-3 additional cuts are anticipated for 2026 which very well could happen with Chair Powell being replaced in May (Kevin Hassett seems likely as the next nominee) who is more of a dove when it comes to rate policy. Oppenheimer has released their 2026 S&P 500 price target which is $8,100 or about 17.9% upside from last Friday’s close. This seems reasonable given the resilience we continue to see within earnings. Taking everything into consideration, I continue to favor well established companies with lower multiples and high cash flow at we look ahead to 2026.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!