Oppenheimer Analysts Forecast Bull Market Extension

Investing.com — Oppenheimer analysts stated Monday that the current bull market is likely to continue into 2025, with a market peak at least 6-12 months away.

In their latest research note, they argue that while signs of market fatigue are emerging, leadership in high-momentum stocks should continue to drive gains in the coming months.

Oppenheimer noted, "Our work shows leadership should continue to be bought and lagging stocks should be sold during the later stages of a bull cycle."

They highlighted that this phase often rewards high-momentum stocks, even as the broader market shows signs of stress.

'As Good As It Gets' Moment

Oppenheimer introduced the concept of the 'As Good As It Gets' moment, described as when market breadth reaches its widest, allowing even underperforming stocks to enjoy temporary gains. They explained, "Generally speaking, the 'As Good As It Gets' moment is when internal breadth is broadest and poor selection has been rewarded."

Crucially, they believe this moment typically occurs 6-12 months before the market reaches its final peak.

Market Conditions Assessment

To assess market conditions, Oppenheimer pointed to their proprietary Sector Culprit Indicator, which tracks the performance of the S&P 500's weakest sector. Currently, the indicator reflects a 12% year-over-year gain in the Energy sector, signaling that the market is not yet near a top.

They noted, "A sector culprit (-20% y/y) is one of our market-top signals," suggesting that further gains are likely before the conclusion of the bull market.

Investment Recommendations

For investors, Oppenheimer recommends focusing on high-momentum stocks in the coming months. They emphasized, "High-momentum should continue to outperform vs. low-momentum, regardless," while cautioning against holding low-momentum names as the market approaches its peak.