Stocks will come out of crisis and hit new record highs: Tony Dwyer

Texas News Today

Wall Street could have significant buying opportunities.

Tony Dwyer of Canaccord Genuity believes a record recovery is expected after the recent market turmoil.

The company’s chief market strategist told CNBC’s “Trading Nation” on Tuesday that “we’ll be moving forward from this summer through the end of the year with the upshot.” “We are not there yet.”

The Dow and the S&P 500 recorded their fourth consecutive negative session. The movement followed a sharp fall in the index on Monday. The Dow is currently down 5% from record highs, while the S&P 500 and the tech-intensive Nasdaq are down 4%.

“It’s a one-month fix in the broader market,” Dwyer said. “It is not overbought or oversold at this point considering it is down about 2% yesterday.”

A long-term market bull that pulled back last spring and downgraded the market to neutral in April, Dwyer took a jibe at Washington’s financial cliffs, a Federal Reserve Board interest rate decision on Wednesday and a fierce China exchange. said. He cites the impact of the debt crisis by developer Evergrande. As a reasonable short-term negative catalyst.

“These are good excuses to make a profit,” he said.

In Dwyer’s Tuesday research note to investors, he showed the roads are likely to see a short-term reflex recovery. But they feel that reading in the middle is more inauspicious.

“Since there has already been a sharp rebound from the day’s low on Monday and the catalyst for a correction is yet to be resolved, once the downward process begins a slight further downside is expected, and further vulnerabilities has begun to add risk to the market,” Dyer wrote.

He expects the scale of short-term withdrawals to be limited to a few percentage points.

On the downside, Dwyer plans to buy finance, industry, materials and energy. Currently, Materials and Energy are firmly in a correction zone, more than 10% away from 52-week highs.

They argue that economic resumption of the good around business is largely over now, and they will be the key to record market outbreaks within a few months.

“It’s more important to see what the end of the year opportunity is,” Dwyer said.

CNBC Christopher Hayes contributed to this report.

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