While any reform or repeal of Dodd-Frank may be down the road, he believes near-term catalysts include rate hikes. Not only is there the anticipation of a December increase by the Federal Reserve, there is talk about more rises next year because fiscal stimulus is expected, he said.
Plus, trading activity has been “huge” and in a stronger market environment companies can raise capital and do more initial public offerings, said Schutz.
He also thinks there is now going to be more mergers and acquisitions.
“Some M&A has stalled because there’s a gap between the buyer and the seller. Well, guess what happens? I mean the buyer’s stock price is now up meaningfully so then can now meet the price of the seller.”
And a good environment for capital markets also means that estimates will be rising, Schutz said.
“You don’t snap your fingers and all of a sudden earnings get better but clearly there’s upside to everybody’s estimates for the next couple of years.”