Julian Emanuel, strategist at Evercore ISI, believes the S&P 500 could reach 9,000 over the next twelve months, representing an additional 16% rally from Friday’s close at 7,785.76. He points out that the traditional signals typically associated with the end of a bull market, namely a recession, spiking long-term yields, or profound FOMO, are not present. The number of negative beta stocks, those moving inversely to the S&P 500 over six months, has reached a record 121 names, including McDonald’s, PepsiCo, Kinder Morgan, CoStar Group and Gartner. Emanuel also notes that corporate leverage remains subdued and that the AI-driven bull market of the 2020s has not yet reached the scale of the innovation-driven bulls of the 1920s and 1990s.
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