TECH - S&P 500 To Rally Further Next 2 Weeks? Wealth Manager Points To 'Bullish Seasonality' But Warns Downside Volatility Could Follow After Tech Earnings Season | Benzinga
The stock market has got off to a terrific start in the second half, with the S&P 500 closing above the 5,500 mark for the first time ever on Tuesday. Against this backdrop, a wealth manager weighed in on what’s in store for the remainder of the year.
Risk/Reward Unattractive: The next two weeks have strong bullish seasonality, said Lumida Wealth co-founder Ram Ahluwalia in a post on X, formerly Twitter. The wealth manager pointed to a BofA Securities sell-side indicator that is contrarian in nature, which is extremely bullish when the sell-side is bearish and vice-versa.
The indicator is currently in neutral territory, with a slight bias toward a sell signal, according to BofA, a snapshot of the firm’s note shared by Ahluwalia showed. But the level still points to healthy price returns of +13% over the next 12 months, he noted
Ahluwalia said at the current juncture, the risk/reward is not as attractive as it was a few months ago. The risk/reward may not be so favorable after tech earnings or going into the Democratic National Convention due to the rise of uncertainty, he said. The DNC is scheduled for Aug. 19-22.
He expects earnings ...