Paul Meeks recently appeared on CNBC to talk about whether or not the S&P could reach 2,500. Tim Lesko from Granite Investment Advisors also joined in the discussion. Watch the full video below:
Since April, the market has been strong in earnings growth and revenue. According to Lesko, this is a good sign that we won’t have any issues getting above the 2,500 marker...and potentially even higher.
Lesko notes that, because interest rates are staying low and inflation rates are pretty tame, there’s really no reason the market can’t go even further than 2,500.
It would seem that the fundamentals justify the gains we’ve been seeing over the last few months. Meeks outlined these three fundamentals:
- Strong corporate earnings
- Operating market expansion
- Revenue that’s mostly slack, but still okay
Even so, both Lesko and Meeks pinpointed a few changes and wildcards in all of this– mainly the geopolitical environment. A few things to pay attention to include:
- What will Trump says next
- What’s going to happen in North Korea
- What will the Feds do with interest rates
- Will budget issues be resolved by the end of the month?