“ ‘We’ve taken out the froth that had come into the market in certain [mega cap] names. It may be a good opportunity to pick up some really good, high quality growth stories that are on sale right now.’ ”
That’s how John Stoltzfus, Oppenheimer Asset Management strategist and Wall Street bull, responded when CNBC asked him in an interview if big name stocks like Amazon AMZN, -1.78% and Facebook FB, -0.89% are on sale in light of recent declines.
“It’s probably not a bad time to consider looking for some babies that have gotten thrown out with the bath water,” Stoltzfus continued, adding he wouldn’t, however, “back up the truck” just yet.
Looking ahead, he said that there are two key factors the bull market will need to keep the rally going: A supportive Federal Reserve and a stimulus package. The availability of a vaccine and, of course, the election could also play a big role in where the stock market is headed from here.
“You want to see a result that comes out of this that is friendly to the taxpayer. That’s friendly to business, That’s friendly to creation of jobs — overall a good story for the economy,” Stoltzfus said of who ultimately ends up winning the election. “Anything that challenges that will likely see the markets continued to show nervousness.”
Listen to the whole interview:
Meanwhile, futures on the Dow Jones Industrial Average DJIA, -0.87%, S&P 500 SPX, -1.11% and Nasdaq Composite COMP, -1.07% were all moving lower on Sunday night.