about 2 years ago • 1 min
Even after three straight years of double-digit gains in US stocks, Wall Street is still surprisingly optimistic about the outlook for 2022.
Bloomberg regularly surveys investment bank strategists about where they see major markets heading, and in the latest poll, published on Thursday, the average prediction is for the benchmark S&P 500 to end 2022 at 4,950 – 6% above its current level.
What’s more, when you take the median of the 19 forecasts instead of the mean, they reckon the index will hit the fabled 5,000 mark. The chart above shows how the S&P 500 has moved compared to Bloomberg’s strategist surveys over the past decade.
The most bullish bank, Oppenheimer, reckons the S&P 500 will climb to 5,330 by the end of next year. It argues that growing profits will support the market, aided by a supportive Federal Reserve (Fed) that will merely “pump the brakes” rather than “choke off liquidity.” Meanwhile Morgan Stanley, the most bearish bank, is predicting the index will decline to 4,400 as the Fed rapidly pares back its bond buying program.
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