over 2 years ago • 1 min
Just as US stocks enter a soft patch, market strategists at Wall Street investment banks are increasing their forecasts for the S&P 500 by the most this year.
The average of 21 strategists’ forecasts compiled by Bloomberg now predicts the S&P 500 will end the year at 4,466. That’s an increase of 131 points over the past month, the biggest jump since the start of 2021.
As the chart above shows, the gap between those strategists’ forecasts (in pink) and the index’s actual performance (in blue) has grown to the widest since April – creating an opportunity for those who side with Wall Street's projections.
The S&P 500 will have to climb 11% before the end of the year to reach Wells Fargo’s prediction of 4,825, the most optimistic among all 21 forecasts. But if Stifel Nicolaus – the most bearish – is correct, we could be in for a 13% drop to 3,800 over the next three months.
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