Stocks Have Breached Wall Street’s Year-End Target, And It’s Only April

Stocks Have Breached Wall Street’s Year-End Target, And It’s Only April
Andrew Rummer

almost 3 years ago1 min

Mentioned in story

This year’s 10% gain in US stocks has pushed the benchmark S&P 500 index above Wall Street’s forecast for the end of 2021, suggesting either the market will struggle to gain more from here or strategists will have to play catch-up and increase their projections.

As the chart shows, the S&P 500 (in blue) has risen to 4,128, breaching the 4,100 median forecast of 22 strategists polled by Bloomberg (the horizontal pink line). 

Estimates for where the index will end the year range from Cantor Fitzgerald at the top end with 4,400 to Bank of America and Stifel Nicolaus at the bottom with 3,800. 

If US stocks keep climbing, Wall Street’s finest are likely to nudge their projections higher to adjust for the new reality. After all, they’ve already brought their median end-2021 forecast up from 3,800 over the past six months. 

Still, the reticence shown by these market strategists – who set their targets based on top-down macro trends rather than the bottom-up, single-stock focus of analysts – suggests US stocks might be in for a tougher ride following four straight quarters of gains.



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG