This market technician sees S&P 500 back at 4,625 this year
- Piper Sandler's Johnson sees an 18% upside in the S&P 500 index.
- He dubs industrials and energy as best sectors to own this year.
- The monthly consumer prices report is scheduled for tomorrow.
S&P 500 has had a good start to the new year and the upside, as per a Piper Sandler analyst, will continue to unlock moving forward.
S&P 500 could gain another 18%
According to Craig Johnson, the benchmark index could hit 4,625 this year. That represents about an 18% upside from here.
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Those have been the catalysts for equity markets over the last several months. From our perspective, until those trends change or reverse higher, I think you’re going to continue to see the equity markets work.
The Bureau of Labour Statistics is scheduled to publish its monthly consumer prices data on Thursday. Ahead of it, S&P 500 is trading just below a key resistance around the 4,000 level.
Johnson shares a few stock picks for 2023
$4.3 trillion worth of cash on the sidelines also contributed to his bullish stance. Sectors that he particularly recommends sticking to in 2023 include industrials and energy.
Investors need to keep in mind that it’s always five o’clock somewhere. There’s always a bull market somewhere. Industrials and energy are putting up the best relative strengths. Those are the best and strongest areas of market right now.
Within these, two of the names that he specifically likes include Schlumberger NV (NYSE: SLB) and Boeing Co (NYSE: BA) that last month secured the largest order for wide-body aircraft in the history of the United States (read more).
So far, the benchmark index has gained nearly 4.0% this year.