Record breakout running for 2021 end, says Market bull Tony Dwyer

Tony Dwyer

Satisfying year-end for the Investors

The year 2021 will end with a happy finale for investors. According to Tony Dwyer of Canaccord Genuity, the market’s overbought conditions should be compensated by great optimism and solid historical tendencies.

On Monday, the firm’s chief market strategist told CNBC’s “Trading Nation” that “the internals of the market are still quite sound.” The Dow, S&P 500, and the tech-heavy Nasdaq all began the week with all-time highs. The three indices have likewise been on a winning streak for the past five weeks.

“To be honest, the market hasn’t been that picky.” “It’s been the mega cap growth theme, as well as cyclicals,” said the long-term bull. Based on the regular trend, Dwyer predicted a 3 percent to 5% rise between now and the end of December in his monthly strategy picture book, which was released Monday.

Forecasts and Opportunities for 2021

“Based on the pattern of good years through October and the improved tactical backdrop, we believe the year-end potential still exists.” This covers our key fundamental thesis as well — although we’d be patient buyers,” Dwyer said. He claims that the current market environment is considerably different from his “summer of indigestion” forecast.

“The market as a whole is behaving better,” Dwyer added. However, heartburn may still be in the horizon. The closing weeks of the year, according to Dwyer, will be rough.

“In general, the market should continue to rise – a few more percent towards the end of the year,” he said. “However, it will be much more tough than the last truly 9% in the last five weeks.”

Dwyer, who upgraded the market to buy from neutral on October 4, favours cyclical groups at the moment. Financials, industrials, and materials are his favourites. Dwyer explained, “It basically comes down to a cyclical play against an economically defensive play.” “The cyclicals have more room to run towards the end of the year.”

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