Tony Dwyer is of the opinion that investors should start buying shares instead of worrying about a possible correction in financial markets.
According to the chief strategist of Canaccord Genuity, more than 90% of the shares listed under the S & P500 are over their 50-day periodic averages. This lead is usually a strong rise, notes Dwyer.
“It’s really remarkable,” says Dwyer to CNBC. “In the worst case scenario, in the next 6 to 12 months your return will be 9.2%.”
He calls it “the biggest buy signal after a strong correction”. Upward movement of 9% or more will bring the S & P500 to record levels. However, Dwyer does not entirely reject the possibility of sharp downward movements, given what we saw in December 2018.
According to him, any move down this year will only be temporary. Its annual target for the S & P500 is 2950, arguing with the strong economic upturn, the open credit markets and the FED’s credentials.
“Any attempt to adjust from current levels will be very short and limited, and even those adjustments of the order of 4 and 7% do not last for a very long time.” – says Dwyer.
Trader Martin Nikolov