He favours cyclical sectors such as energy, industrials, materials and select semiconductors.
The risks are concentrated in rates and energy.
A Reuters poll last month pegged the index at just 7,620 by year-end, with nine of 13 respondents calling a correction in the next three months unlikely.
“What’s different now is we have higher energy prices, rates moving higher, and we are seeing inflation becoming more entrenched,” said Anthony Saglimbene, chief market strategist at Ameriprise, who holds a 7,500 target.
Futures markets are now pricing in a potential Federal Reserve rate hike later in 2026, Reuters reported, a reversal from the cuts expected at the start of the year.
