Wells Fargo thinks it’s time to buy into the sell-off.
Wells Fargo has discounted fears over trade wars and rate hikes.
Last week, tech stocks sold off, the Federal Reserve hiked rates, and President Donald Trump inflamed tensions with the world’s second largest economy.
To one market analyst, all of the above means it’s not a time for investors to worry. Instead, it’s time to buy.
Scott Wren is senior global equity strategist at Wells Fargo. “We’re trying to get our clients to buy on these pullbacks. We think this thing still has some upside the rest of the year.”
Wren believes that the tax changes that were passed late last year by Congressional Republicans will provide extra economic stimulus. As a result the growth cycle will be extended by at least another year. In addition, tax stimulus should give a big boost to S&P 500 corporate earnings this year.
Wells Fargo is not the only institution that believes that there is still opportunity in this market, especially among #semiconductor manufacturers.