Invesco strategist Brian Levitt. Oppenheimer Funds
- Wall Street’s recession fears have eased in recent weeks after a string of robust economic data.
- “This is an economy that is stronger than people thought it was,” Invesco strategist Brian Levitt told CNBC on Tuesday.
- He also expects stocks to start a “FOMO” rally from now through year-end.
Recession fears on Wall Street have eased lately after a series of robust economic data releases.
Corporate earnings were strong in the second quarter and investors are anticipating that the Federal Reserve may have finished raising interest rates for now as inflation cools rapidly.
This good news has brought the S&P 500 close to an all-time high, with the benchmark stock market index up 17% year-to-date and 9% in the last three months alone.
Brian Levitt is bullish on the US economic outlook – and believes the rally that propelled equities in 2023 still has room to run.
“I assume this is an economy that is stronger than people thought,” Invesco’s global markets strategist told CNBC on Tuesday.
“There will be no recession in 2023, the Fed is nearing its target if not already, and that suggests the market is moving higher from here,” Levit added.
He also pointed to another phenomenon that’s propelled stocks higher this year: “FOMO,” or the fear of missing out.
“I would think there’s going to be a FOMO rally between here and the end of the year,” Levitt said. “And a lot of investors missed out, there’s a lot of money on the side and I would expect more of that to find its way into the market.”
Fear of missing out has caused some of Wall Street’s most dovish voices to scale back their dovish forecasts in recent weeks.
“We were wrong,” Morgan Stanley’s Mike Wilson said in a research note last month — a surprising admission of fallibility from a strategist who has long been one of the most dejected voices on the market.
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