Rudi: Why CSL could be headed for $500

"The ruling narrative is a lot of stocks haven't participated in this rally, so their time will come now. That's small caps, value stocks, and cyclicals," Rudi says. 

"But apart from the macro picture with a recession or no recession, and liquidity and all of that, if earnings don't confirm that thesis and management teams can't pick up confidence for the year ahead, that narrative will fall flat." 

Other narratives include the momentum behind artificial intelligence, which Rudi dubs the fourth industrial revolution; the strength in consumer spending and whether or not the consumer is going into hibernation; and the revival of the healthcare sector. 

It's the last narrative, in healthcare, that has Rudi particularly excited. 

"Healthcare was the best-performing sector for two decades pre-COVID. And post-COVID, it was almost the worst. So has healthcare's time now arrived? ResMed's (ASX: RMD) result was fantastic. So, good vibes already. Let's see what Cochlear (ASX: COH) and CSL (ASX: CSL) come out with," he says. 

That said, he doesn't believe that all healthcare stocks will experience the same revival. He notes that investors are likely to see a polarization in results, with names like Healius (ASX: HLS), Sonic Healthcare (ASX: SHL), Ramsay Health Care (ASX: RHC) and Nanosonics (ASX: NAN) likely to experience further pain. 

On the other side of the spectrum, Rudi is extremely bullish on the outlook for CSL (ASX: CSL). He argues that CSL's time to shine is now and that the stock could be on its way to $400, if not $500 a share.