Tags: LandColt | Schoenberger | Stocks | Higher

LandColt’s Schoenberger on Stocks: 'We Are Going Higher"

By John Morgan   |   Sunday, 26 May 2013 10:02 AM

Buying the dip may be a crowded strategy, but Wall Street trader Todd Schoenberger is banging the table for just that approach for the U.S. stock market, which has already made big gains for 2013.

“We’re going higher,” he told Yahoo Breakout, dismissing pundits who say it’s time to take profits. “If the markets go down 2 percent to 5 percent, it’s a great entry point for your viewers to get back into the market.”

“Dow 16,000 by the end of the year!” Schoenberger predicted.

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

Schoenberger, managing partner at LandColt Capital, said the lack of investment alternatives is a big reason for the stock market’s endurance, especially with interest rates so low. “The only reason it’s going higher is because there’s nothing else out there.”

His recommendation themes include travel and leisure, oil and gas, and multinationals. The travel and leisure sector is good because of the summer vacation season, and oil and gas prices often rise during the hurricane season.

“The geopolitical risk is not out there right now,” he declared. “With yields so low, you’ve got to take a look at the multinationals.”

The Dow Jones Industrial Average hit 15,530 on Wednesday. Yahoo Breakout noted a 5
percent downturn would take it to 14,750, and a reasonable 8 percent rally from there would hit 16,000.

Schoenberger is not alone in talking about 16,000 for the Dow. Barron’s April 20 cover showed a cartoon bull on a pogo stick, with the exclamation “Dow 16,000!”

Reuters reported many analysts expect the eventual tapering of Fed stimulus will be accompanied by an expansion in the economy and in earnings, which would continue to
underpin the stock market.

Still, uncertainties remain, as shown by Wall Street's pullback last week. "Markets are looking for a reset and a retracement lower, closer to more compelling valuations," said Peter Kenny, chief market strategist at Knight Capital in Jersey City, New ersey.

Kenny told Reuters that recent stock market weakness represents a shift that "reintroduced a
sense of caution that has long been absent" in markets.

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

© 2015 Newsmax Finance. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved