Some analysts turned bullish on stocks in the wake of Tuesday's election results, but Sam Eisenstadt, former research director at Value Line, already was bullish.
He sees the S&P 500 reaching 2,225 in the next six months. That would represent a 10 percent gain from Wednesday's level of 2,024.
Eisenstadt's forecast is based on a proprietary model of indicators, and it matters because he is "the market timer who has more successfully called stocks' direction in recent years than anyone I can think of," Mark Hulbert, editor of Hulbert Financial Digest, writes in a column for
MarketWatch.
"Eisenstadt's model has an impressive track record. . . . It has been able to explain 36 percent of the variation in six-month changes in the S&P 500."
That number may not sound too impressive, but it's "far better than being able to explain nothing," Hulbert says. "And, unfortunately, most of the indicators that investors and Wall Street pay lots of attention to are, from a strict statistical point of view, worthless."
While Republican election victories helped boost stocks Wednesday, many market participants say the focus will soon return to fundamentals.
"It's a temporary Washington boost," Karyn Cavanaugh, a senior market strategist at Voya Investment Management, tells
The Wall Street Journal. "The economic landscape and corporate earnings are really what drive markets."
Of the S&P 500 companies that have reported results so far this quarter, 81 percent have beaten analysts' profit estimates, according to
Bloomberg.
© 2025 Newsmax Finance. All rights reserved.