Tags: Dwyer | target | S&P | 500

Canaccord's Dwyer Maintains Target for S&P 500 Despite Market Sell-off

By    |   Monday, 13 October 2014 05:40 PM

The 7.2 percent drop of the S&P 500 index from its Sept. 19 record high hasn't been enough to make a bear out of Tony Dwyer, chief strategist for Canaccord Genuity.

He is sticking with his year-end forecast of 2,230 for the index. That would represent 19 percent rise from Monday's close of 1,874.74—pretty hefty for a 2 ½-month period.

"The reasoning that I had for that price target remains in place," he told CNBC. "We still have low and stable inflation. We have a Fed that is acting increasingly dovish over the weekend. We have a steep yield curve. Money availability is improving."

Consumer prices rose just 1.7 percent in the 12 months through August.

As for the Federal Reserve, until this weekend most economists expected the central bank to begin raising rates around mid-2015. But then Fed officials indicated that the global economic slowdown may delay a rate hike.

"If foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise," Fed Vice Chairman Stanley Fischer said in a speech.

Many market participants share Dwyer's bullishness. "Investors had seen the global growth scare as an excuse to sell the rally," James Butterfill, head of global equity strategy for Royal Bank of Scotland's Coutts & Co., told Bloomberg.

"This has all been a little bit overdone at this juncture. We see U.S. growth as becoming much more sustainable over the long term."

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The 7.2 percent drop of the S&P 500 index from its Sept. 19 record high hasn't been enough to make a bear out of Tony Dwyer, chief strategist for Canaccord Genuity.
Dwyer, target, S&P, 500
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2014-40-13
Monday, 13 October 2014 05:40 PM
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