A Wall Street bull – an endangered species: Credit Suisse’s strategist sees stocks rallying By Investing.com

By Senad Karaahmetovic 

While most U.S. equity strategists, including those at Morgan Stanley, Goldman Sachs, and Bank of America, continue to warn their clients that U.S. stocks are likely to revisit 2022 lows, Credit Suisse’s strategist is staying on the other side.

Morgan Stanley’s strategist said earlier this week that he is growing increasingly convinced that the will hit the low 3000s next year. Even JPMorgan’s strategist, one of the biggest bulls on the Street in 2021, has recently turned bearish and trimmed the bank’s risk exposure.

Credit Suisse’s Chief U.S. Equity Strategist is a well-known Wall Street bull. In the closing weeks of 2021, he was also one of the few to remain bullish on U.S. stocks despite swollen valuations. A year later and he is one of the very few equity strategists calling for solid returns in U.S. stocks.

In his latest note sent to Credit Suisse’s clients, the strategist said the rising consumer confidence is bullish for stocks. He “blamed” the rise in on falling and gasoline prices, higher wages, and abundant .

“CPI is expected to fall 4-5% over the next 12 months, wage growth should remain sticky at elevated levels, and labor market tightness is likely to be persistent, leading to further upside in confidence measures. Cost of living adjustments for retirees, and many government workers, will add further to consumer purchasing power,” he wrote in a client note.

This type of environment “should lead to stronger spending, delay the onset of the next recession and extend the market rally,” the strategist concluded.

S&P 500 closed at 3,878.44 yesterday, down 18.6% year-to-date (YTD).