James Demmert, founder and chief investment officer with Main Street Research, agreed that the recent selloff could be a good thing for longer-term investors.“Investors were really complacent and optimistic,” he said, adding that he’s not surprised to now see skepticism and doubt about the economy. But Demmert added that he’s encouraged by the fact that corporate earnings growth should be solid in the second half of the year and that valuations outside of the Magnificent Seven are still reasonable. The equal-weighted S&P 500, after all, trades for just 17 times forward earnings estimates, below its five-year average. With that in mind, Demmert thinks the S&P 500 could hit 6000 before the end of the year.

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