Oppenheimer Asset Management's John Stoltzfus is questioning the force of the historic market rally.
Stoltzfus, who is the firm's chief investment strategist, warned clients in a research note this week that "These benchmark moves had even long-term bulls like us wondering if the stock markets are climbing the proverbial 'wall of worry' too fast for this early in a year."," he cited tax risks under President-elect Joe Biden as a major piece of his concern.
"We still have certain things that are unknowns about the new administration coming in, particularly if they remove the 2017, 2018 tax reform," Stoltzfus said Wednesday. "It [Wall Street] certainly isn't recognizing those risks from what we can tell."'s economic fallout.Stoltzfus' hunch is investors and traders are more focused on additional near-term federal virus aid and Covid-19 vaccines versus tax threats right now.
" Stoltzfus said. "We recommend being exposed to cyclicals and light weight towards defensives at this point."
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