At the stock market’s party, the dance floor is crowded but the night is still young.
This is the message from Oppenheimer’s chief investment strategist John Stoltzfus in a note to clients on Monday.
The key passage from Stoltzfus:
“Our read on this relatively recent development in the marketplace that has seen a rise in broadly more positive commentary in and around the markets about stocks is best for us taken in context of the primordial analogy of ‘bull market as a party.’ In such context, it seems to us that ‘the dance floor is getting crowded but the night still appears relatively young.'”
Stoltzfus notes that, overall, being “positive” on stocks has become “fashionable” of late, a development that has Stoltzfus a little bit nervous.
“…[A]s contrarians, we can’t help but get a little nervous when it seems as if everybody is starting to ‘move to the same side of the boat’ that we’ve been on for some time now — and heretofore without ‘crowds’ of company,” Stoltzfus writes.
But these are anecdotal concerns, and Stoltzfus still sees plenty of fundamental reasons for stocks to continue trading higher: Stoltzfus reiterated his 2014 price target for the S&P 500 of 2,014.