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Wall Street continues to drive stocks and the US economy higher as profits and growth impress.

But Wall Street’s biggest bull – Oppenheimer Asset Management’s John Stoltzfus – is not only more optimistic about the Fed’s profits and path, but also surprised by the way skeptics have been swept away in this year’s rally.

“For us, the big surprise this year was not so much the resilience of the economy, but rather the substantial capitulation among the bears and the bearish community and the improved broader investor sentiment,” Stoltzfus wrote.

On Monday, Stoltzfus, the firm’s chief investment strategist, raised his year-end price target for the S&P 500 to 5,500, a new Street high. The S&P 500 closed at 5,218.19 on Monday.

Stoltzfus added that this shift “seems to be underpinned by the need to invest in the future, rather than chasing the latest popular choice or actionable idea du jour.”

In other words, if there’s a frenzy in this market, its avatar won’t be found in Leonardo DiCaprio selling stock in a strip mall on Long Island.

That does not mean that this market is free of hype.

Because if there is one catalyst behind the current bull run, it is the launch of ChatGPT in November 2022. In one sense, this market is not so different from the fast money flows that fueled the market runs of yesteryear.

Although Yahoo Finance’s Josh Schafer has noted, recent weeks of trading have seen a broadening of the market’s rally away from AI-focused plays and toward sectors that had more influence on the “real economy,” such as energy, utilities and housing .

“We are not saying that there are no fast players in the daily and week-to-week action, or denying that there is some froth in some corners of the market,” Stoltzfus wrote, “but rather that the hot market stuff so far So far, this appears to have been offset by a broadening of the current rally across sectors, styles and market caps, offsetting the ‘irrational exuberance’.”

And while some strategists have discussed the idea of ​​upside scenarios for stocks that send the benchmark index soaring to 6,000 (or higher), Stoltzfus’ call is more definitive.

Stoltzfus also acknowledges that his bullish outlook may not be bullish enough.

Given strong earnings, demographics and the “resilience of the economy,” Stoltzfus wrote, “we may have to raise rates again later this year if this economic and market outlook shows us to be too conservative in our projections.”

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