SAN RAMON, Calif.--(EON: Enhanced Online News)--Erick Ormsby, the CEO of Alcosta Capital Management, who has been managing money since 1991, says that, according to historical norms, the S&P 500 stands a good chance of being even higher a year from now if it follows past patterns. Alcosta is an independent registered investment advisory firm.
“fiscal stimulus from lower tax rates, reduced regulations for businesses likely allowing for more efficient operations and lower administrative expenses, and significant spending on infrastructure spurred by government incentives.”
How high can stock prices go? Based on the type of market we're currently in, the S&P 500 has historically risen an average of 20% in the 12 months following stock prices reaching an initial new high, according to Ormsby's research. That new high was reached on July 11, 2016. Given the historical record as well as policies likely to be implemented by President-elect Donald Trump's incoming administration, "our belief is that, despite various risks, from today's levels the S&P 500 may be as much as 15% higher by the end of 2017," says Ormsby.
"We believe the U.S. economy is poised for accelerating growth, as we embark on a period similar to the 1980s, when Ronald Reagan was President," adds Ormsby. Among the contributing factors during this time: Ormsby expects "fiscal stimulus from lower tax rates, reduced regulations for businesses likely allowing for more efficient operations and lower administrative expenses, and significant spending on infrastructure spurred by government incentives."
Inspired by the October 1987 crash to search for undiscovered companies that would someday grow into household names, Ormsby's career in financial management got a jump start before he even finished college when he vaulted into the top ten in the 1992 U.S. Investing Championship, which helped finance his degree in managerial economics.
Ormsby, a highly respected securities analyst and portfolio manager, worked at three top tier investment firms, a global hedge fund, a San Francisco Bay Area money management firm and Merrill Lynch before starting Alcosta Capital Management in 2002.
Alcosta Capital Management can be reached at 888-267-6729 or www.alcostacapital.com.
The information contained herein represents the views of Alcosta Capital at a specific point in time and is based on information believed to be reliable. No representation or warranty is made concerning the accuracy of any data compiled herein. In addition, there can be no guarantee that any projection, forecast, or opinion will be realized. Any statement non-factual in nature constitutes only current opinion which is subject to change. These materials are provided for informational purposes only. The S&P 500 index is published by Standard & Poor's. The S&P 500 index is the benchmark, and is shown for comparison purposes only. Investors cannot invest in a benchmark directly. Past performance is not a guarantee of future results.