The Bull Run in Stocks: Analyst Predicts Further Room for Growth

The bull run in stocks may have further room for a stampede, according to Bradesco BBI’s head of equity strategy Ben Laidler. Laidler believes that we are in the early stages of a bull market, with the earnings recovery story just beginning. He predicts that there could be two interest rate cuts from the Fed this year, which would fuel investor excitement and drive strong earnings growth.

Laidler’s optimistic outlook suggests that stocks could potentially rise by at least 100% over the next five years. He points to the current bull market that started in October 2022, with the S&P 500 reaching its most recent low and gaining 55% since then. The index has already surged nearly 17% this year, reaching a new record on Friday.

The momentum in the market has been driven by enthusiasm around AI, leading to record highs for companies like Nvidia and Apple. The Dow Jones Industrial Average has surpassed 40,000, and the S&P 500 has crossed the 5,000 mark. According to Truist chief markets strategist Keith Lerner, the S&P 500 is experiencing its 16th strongest start to a year since 1950.

As we head into earnings season, FactSet predicts second-quarter earnings growth for S&P 500 companies at 8.8%, the highest year-over-year growth rate since the first quarter of 2022. Double-digit earnings growth is expected in the Communications Services and Information Technology sectors.

Overall, Laidler remains bullish on the market, citing strong fundamentals and upcoming rate cuts. The outlook for AI stocks also looks promising, according to Goldman Sachs portfolio manager Brook Dane.

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