2024 should see a strong Q1 and Q4, says Piper Sandler's Craig Johnson

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AT 4769. THAT MEANS MOST WERE OFF BY ABOUT 15%. SO WHAT WERE SOME OF THOSE SAME EXPERTS ARE PREDICTING FOR NEXT YEAR? WELL, NOT A BOOM. NEXT YEAR, 4881. JUST A COUPLE OF PERCENTAGE POINTS ABOVE WHERE WE ARE RIGHT NOW. SO IT BEGS THE QUESTION OF WHAT WILL HAPPEN NEXT YEAR. WILL THEY GET IT WRONG AGAIN? CRAIG JOHNSON AND LINDSAY BELL, WELCOME TO BOTH OF YOU. IT IS THE FRIDAY BEFORE NEW YEAR'S. GOD BLESS YOU BOTH FOR GOING ON TV. CRAIG, I WANT TO START WITH YOU. YOU MADE SOME CALLS, NOT JUST THIS YEAR BUT OVER THE YEARS. BACK IN LATE OCTOBER ON THIS VERY SHOW, HERE'S WHAT YOU SAID WOULD HAPPEN IN THE FINAL 2+ MONTHS OF THE YEAR. >> 14% UPSIDE. ONCE WE GET SOME CLARITY ABOUT WHAT WILL HAPPEN IN WASHINGTON AND GET TO THE EARNINGS SEASON AND THESE KIND OF THINGS, I THINK THERE IS A REAL MEANINGFUL POP. AGAIN, WE ARE STICKING WITH OUR YEAR END OBJECTIVE. >> YOU CALLED IT. YOU WERE CALLING FOR ABOUT 15%. I AM NOT GOING TO DENT THERE. WE ARE HAPPY EITHER WAY. WHAT ARE YOU SEEING MOMENTUM WISE FOR NEXT YEAR? >> WELL, BRIAN, I JUST HAVE TO CALL OUT THAT I THINK IT WILL BE A VERY DIFFERENT SET UP THEN WE HAD FOR 2023. WE THINK NEXT YEAR WILL BE A HLTR, OR A HIGH LEVEL TRADING GRAINS. WE ARE SORT OF CONSOLIDATING Q2 AND Q3 AND HAVE A STRONG PUSH AFTER THE ELECTION IN Q4, LEAVING A YEAR END OBJECTIVE OF 50-50 FOR NEXT YEAR. WE ARE SEEING ABOUT A 9% TO 10% UPSIDE FOR NEXT YEAR. >> I AM NOT GOING TO WHATEVER BECAUSE YOU GUYS ARE SMARTER THAN ME, BUT I HAVE MY FINAL PREDICTION. ONE OF THEM, I JUST WONDER IF THE MARKET MAY STALL OUT, LINDSAY, FROM LIKE APRIL OR MAY ON BECAUSE PEOPLE FROM 2016 -- A MAJOR SETBACK AND SEE WHAT HAPPENS WITH THE ELECTION. YOU KNOW? NICE MOMENTUM TO START THE YEAR FROM NOW. I HAVE NO IDEA WHAT WILL HAPPEN WITH THE ELECTION. LET'S JUST CHILL. WHAT DO YOU THINK? >> HISTORICALLY SPEAKING, THAT IS WHAT CAN APPEN. AFTER THE ELECTION HAPPENS, YOU CAN SEE A BIG POT BECAUSE THERE IS MORE CLARITY. WE ALL KNOW THE MARKET LIKES TO SEE CLARITY. SO, YEAH, YOU GET THAT CLARITY AT THE END OF THE YEAR. BUT WHEN I THINK ABOUT 2024, WHAT I SEE IS THIS RETURN TO NORMAL EARNINGS GROWTH. SALES GROWTH, ABOUT 5%. THOSE ARE NEAR HISTORICAL AVERAGES. THEN WHEN I THINK ABOUT INTEREST RATES THAT HAVE COME DOWN, THINK ABOUT THE FED CUTTING BECAUSE THEY HAVE TO AND WE ARE IN A ECONOMIC CRISIS, PERIOD. I THINK YOU CAN GET A 8% TO 10% POP IN THAT KIND OF ENVIRONMENT, TOO. IT DOES NOT MEAN IT WILL BE A STRAIGHT LINE UP, ALSO. >> I DO NOT WANT TO MISQUOTE YOU, CRAIG, BUT ARE YOU SUGGESTING WE CARRY THIS MOMENTUM OVER? I THINK IT WAS 2016 THAT THE MARKET DID NOTHING FOR MONTHS LEADING UP TO THE ELECTION. >> WE HAVE TO PUT A LITTLE BIT OF A TWIST ON IT FOR THE VIEWERS HERE. THIS HLTR MEANS WE SEE THE MID STOCK START TO CATCH UP. >> DID YOU READ MY -- I HAVE NOT EVEN POSTED MY PREDICTION, CRAIG. I SWEAR, I AM NOT STEALING YOUR STUFF. WHY DO YOU SAY THAT? >> I GO BACK AT THE CHARTS AND LOOK AT THESE STOCKS. THEY ARE ALL STARTING TO CONSOLIDATE SIDEWAYS. IF YOU LOOK AT THE LOWS OF OCTOBER, YOU CAN SEE THAT THESE MAG7 HAVE BEEN OUTPERFORMING THE S&P 400 AND EVEN THE 500. I THINK THE DIFFERENTIAL BETWEEN THE MAG7 AND THESE SMALL-CAP AND GROWTH STOCKS ARE GOING TO DO WELL, AND I THINK THAT IS WHERE YOU ARE GOING TO GET YOUR BEST PERFORMANCE. >> I LOVE IT. THE MAG7 . DO YOU THINK THE MAG7 WILL TURN INTO THE LAG-7? >> KUDOS FOR THE TERMINOLOGY. I TEND TO AGREE. I DO THINK THE LAG-7 WILL. THERE STILL 40% OF THE S&P 500 INDEX. SO WE NEED THEM TO PERFORM PRETTY WELL. IF YOU LOOK AT THOSE SEVEN STOCK IN PARTICULAR, YOU ARE LOOKING AT ABOUT 29% EARNINGS GROWTH. 90% SALES GROWTH. AND THE MULTIPLES ARE MOST OF THEM ARE STILL BELOW THEIR FIVE- YEAR AVERAGES. I AM SURE DAN CAN SPEAK MORE CONCISELY TO IT, BUT I THINK
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Channel: CNBC Television
Views: 16,185
Rating: undefined out of 5
Keywords: Brian Sullivan, Finance, Finances, Market news, Markets, Money, News, business news, cnbc, news station, stock market, stocks, us news
Id: CdkN_3U9eio
Channel Id: undefined
Length: 5min 16sec (316 seconds)
Published: Sat Dec 30 2023
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