"This market should be getting smashed. We went from 380 in the beginning of the year to 435 and we're just churning around at all time highs. So what I think what is happening is like last year, why we were bullish last year, everybody knows the next inflection is a cut, last year it was a pause. So why do you want to sell now just because it's going to take two more months to have the cut?" Hatfield says.

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Editor's note: This article was written by Nicholas Jacobino

Video Transcript

- While the Street high for the S&P 500 is now at 5,553, our next guest says, hold my beer. He is looking at an even higher target for the S&P 500 this year, 5,750. Joining us now is Infrastructure Capital Advisors CEO Jay Hatfield. And indeed, in a recent note, you talked about 5,750. AI is part of it. And the Fed outlook is part of it. So talk us-- talk to us how-- about how you got there.

JAY HATFIELD: Thanks, Julie. Well, it does relate to the conversation we're just having. We're assuming the 10-year goes to 3 and 1/4. So if it doesn't, then the theoretical value of the S&P is way below our target. So we can't accept-- it's not going to work if Jamie Dimon is right and we have 8% treasuries.

But we are bullish notwithstanding the fact that our economy is strong, because Europe is very weak. And US investors have a very strong tendency to ignore the rest of the world, which makes all the sense in the world with equities, because you have NVIDIA. All the best companies are here. And everybody looks to the US for equities. But with bonds, that-- they're very fungible.