A renowned Wall Street strategist backed the market's 'remarkable resurgence' to continue as investors pour out of bonds and into stocks

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A renowned Wall Street strategist backed the market's 'remarkable resurgence' to continue as investors pour out of bonds and into stocks
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  • A top investment strategist says the stock market's 2020 rally has much further to run as he expects even more money to pour out of the bond market and into equities.
  • John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, told CNBC's Trading Nation Wednesday: "We remain very bullish on this market."
  • "You're going to see money beginning to further move out of the bond market, and it makes all the sense in the world to be positioned in equities."
  • Stoltzfus said he expects the S&P 500 to hit 3,500 by year end.
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A top investment strategist says the stock market's 2020 rally has much further to run as he expects even more money to pour out of the bond market and into equities.

John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, told CNBC's Trading Nation Wednesday: "We remain very bullish on this market."

"You're going to see money beginning to further move out of the bond market, and it makes all the sense in the world to be positioned in equities," Stoltzfus said.

"This has been a remarkable resurgence in the price of stocks on back of expectations that we will get to a post-Covid environment sometime probably within the next 6 to 8 months."

But Stoltzfus acknowledged that uncertainty surrounding a new round of stimulus as well as the upcoming US presidential election could spook markets.

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Investors are watching for signs of progress on a fresh stimulus package as Democrats and Republicans debate the details of the bill before the Senate goes on summer break on Friday

"In terms of downside risks, we'd say anywhere from 4% to 6%," he said.

The S&P 500 has rallied almost 50% since touching its lowest level of 2020 at 2237.40 in March. It is now close to 3228, as of 8:46 a.m. ET.

He said how quickly a vaccine is developed will determine whether there is any downside to stocks.

"That depends on progress or lack of progress related to vaccines, managing the resurgence and any sightings of a second wave," he said.

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Goldman Sachs thinks the S&P 500 could jump 11% from current levels should a vaccine arrive by year end.

Stoltzfus initially was betting on the S&P 500 to hit 3,500 by year-end. While he scrapped this target after the index plunged in March at the crux of the COVID-19 crisis, he now once again thinks it is feasible.

He concluded: "We can't help but think with the S&P 500 at 3,327, it could look like that 3,500 target is within sights of where the markets could go."

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