The stock market’s impressive rally this year has caused a number of sceptics to point out the major market headwinds and call for a correction.
But Steve Auth, Federated Investments E.V.P., doesn’t think investors need worry about that. Auth was on Fox Business News yesterday and didn’t believe there was any reason yet for the market to lose its momentum.
“In any good market, you need to have headwinds, a wall of worry Liz,” Auth says. “Last week I loved the tape, we had China, weak news there, weak news in housing. We had Spanish yields backing up which is sort of the risk-on, risk-off trade. And with all that bad news, the market was down half a per cent. That tells me there’s a lot of money on the sidelines wanting to get into this market.“
Auth’s current year-end target for the S&P 500 stands at 1,450.
Here’s the video courtesy of Fox Business News.