Bullish on the S&P 500: Predictions for 7,000 by Year-End

S&P 500 hit new records this week and some Wall Street analysts believe 7000 is the next milestone for the index.

Now to get there, tech stocks would likely have to lead the way.

They could get a boost from smooth US trade regulations and regulatory clarity.

Plus Google's earnings this week show. spending definitely not a concern.

Joining me to expand on this prediction is Maryanne Bartels, chief investment strategist at Sanctuary Wealth.

So Maryanne, you're predicting the S&P 500 to hit 7000 by the end of the year.

Take us through the reasons why you're so bullish.

Well, first of all, the economy is growing, and it's growing over 2%.

When you can grow an economy, corporate America can produce earnings, and we're in second quarter earnings season, and the bar was really low.

A lot of analysts lowered their numbers during the early phases of the tariffs, and the estimate was for about 5%, and we're seeing earnings now.

I mean, it's early in the season, but right now earnings are growing 10%.

So we think that the earnings numbers will likely go up, and that's very bullish.

When we look at free cash flow for the S&P 500 relative to the market, it's growing, and we think it has the ability to grow the way it did during the mid 1990s during the internet cycle.

So we still think we're in the very early stages of AI, how it's impacting balance sheets and earnings, and obviously we see it in a very bullish fashion.

So we're talking strong earnings numbers, the economy is chugging along.

So in this kind of environment, what companies and sectors are, you know, catching your eye?

Well, AI is really tech and tech related, so you're seeing information technology, communication services.

Those are very strong sectors.

We expect them to be strong.

The other sector that's very strong is industrials, and that's the story about the infrastructure of building out the infrastructure for AI like data centers.

We also like utilities.

Never before did I ever think I would call utilities growth and income in the same sentence, but because the demand for electricity is.

Now rising for the first time in 20 years.

We also like the utility sector, and another important sector are the financials, particularly the banks, and the banks are doing very well.

You saw them pass their stress tests.

They've raised their dividends, and they just had earnings and and earnings are strong.

So we really like the banking sector within financials, and, and I've always called them the heartbeat of the economy.

And as long as you really have a good infrastructure for the banks, that's positive, and they also look like they'll be getting some deregulation.

And if they do get that deregulation, we think that will continue the banks higher.

What you're not really seeing work in this market are the defensives like health care, which I say is an intensive care and staples, and we continue to see those sectors staying under pressure.

All right, well, you know, we have seen some record highs this week, but stocks aren't the only ones that are posting these strong numbers.

Now you also study crypto.

We're seeing some strong numbers there as well.

What are your thoughts on Bitcoin, some all coins?

Is this momentum going to continue?

We think this momentum is going to continue.

We've been bullish on the crypto space since I've joined the organization 3 years ago.

What we're really undergoing is a massive upgrade of our whole financial system, and we're in the very early stages of that.

And crypto is a huge beneficiary.

Stablecoins are a huge beneficiary.

We just got the pass of the Genius Act, and then hopefully.

As you talked about, we'll get the Clarity Act.

So in terms of Bitcoin, we think Bitcoin is tracking up near 150.

In terms of Ethereum, it's had a great rally, but it does have a lot of resistance in that 4000 to 4100.

But if you can get new highs on Ethereum, that's really going to clear the way for Ethereum to start taking off on the upside.

So we remained very bullish within that context of of the crypto market.

So a lot to be bullish about, but we do have this August 1st trade deadline right around the corner.

How concerned are you and do you think it could throw a wrench in this market momentum? could have a wrench.

When you look at the seasonals of the market, July's very strong, and of course we're in a very strong tape.

It's confirmed by volume and breadth.

But the month of August we normally get a temporary peak and then start going into a correction in September and October.

And I think that can play Out, which means, yes, the tariffs might cause a little bit of ripples, but this market is so overbought we'd really like to see it refreshed, get somewhere between a 5% and 10% pullback, and then the seasonal year and rally into November and December.

So we think the seasonals here can play out very well for the market.

All right, thank you so much for those insights, Marianne Bartels, chief investment strategist at Sanctuary Wealth.

Have a great weekend.