Wall Street strategy chief says stocks at current levels are 'vulnerable' to a 6% sell-off

Lucas Jackson/Reuters
  • John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, said in a note on Monday that stocks at current levels are vulnerable to a pullback of 4% to 6%.
  • This could enable nervous investors to take profits without FOMO, the strategist said.
  • He added: “We are reminded that stocks tend not to move in a straight line higher unchallenged for long.”

John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, said in a note on Monday that stocks at current levels are “vulnerable” to an event in the near term that could cause a pullback of 4% to 6%. Stoltzfus did not detail what the catalyst could be, but said that it could “enable short-term and nervous investors, as well as traders, to take some profits without FOMO (fear of missing out).”


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“We are reminded that stocks tend not to move in a straight line higher unchallenged for long. Such a pullback, however, (depending on the catalyst for profit taking) could likely present an opportunity to buy ‘babies that get thrown out with the bathwater,'” the strategist wrote.

Stoltzfus said Oppenheimer remains overweight US stocks, and its favourite sectors are information technology, consumer discretionary, industrials, and financials. Oppenheimer holds a 2020 price target of 3,500 for the S&P 500, but said that the index could possibly exceed that target given the market’s “persistent strength and resilience.”

The S&P 500 reached a new intraday high of 3,432.09 on Monday and closed up 1%.

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