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Fed won’t raise rates this year, here’s how high markets will go: Wells analyst

New highs for the markets are on the way, according to one Wells Fargo analyst.

The past week has been choppy for stocks, as investors weighed the potential for a September interest rate hike by the Federal Reserve.

"We think this volatility was long overdue, the Fed speak really is an excuse for a lot of people who were sitting on profits in stocks and in bonds to sell," Sameer Samana said Tuesday on CNBC's "Futures Now." "If you look at the Fed, I'm just not sure they said anything all that different. We still don't expect a rate hike in 2016."

Samana believes that the central bank has, for the most part, "tried to avoid surprising the market," and it looks like investors also feel the same given what he has seen.

"If you look at how people are positioned, they are very sensitive to even small moves in the S&P toward the downside," he said. "[They are] widely positioned [long in the S&P], short on the VIX."

In other words, traders also see markets headed to the upside.

Overall, Samana sees the S&P 500 rising to as high as 2,290 by the year's end, meaning that the index would need to surge more than 7 percent from Wednesday's levels. This would take the S&P 500 to an all-time high by the end of 2016.


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