Factbox-Wall Street analysts’ 2022 outlook for S&P 500 -Breaking
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© Reuters. FILE PHOTO – A Wall Street sign can be seen in New York’s financial district on November 8, 2021. REUTERS/Brendan McDermid(Reuters] -Analysts from global banks began to release their 2022 predictions on the U.S. stock markets. This year, the index has increased by nearly 25%. The index ended Tuesday at 4,690.70.
This is the summary of some analysts’ predictions for the index at 2022.
BROKERAGE NAME S&P500 TARGET
@ END 2022
Morgan Stanley (NYSE:) 4,400
Wells Fargo (NYSE:) 5,100-5,300
Goldman Sachs (NYSE:) 5,100
RBC 5,050
BofA Global Research 4600
Morgan Stanley: “While the earnings of the overall index are durable, there will also be greater dispersion among winners and losers. Growth rates will slow materially…2022 will more focus on stocks than any sectors or styles in our opinion.”
Wells Fargo Furthermore, we are pretty much unchanged in our tactical preference for the next 6-18 months.
Goldman Sachs: “Decelerating Economic Growth, a tightening Fed and rising Real Yields indicate that investors should anticipate modestly lower-than-average returns next Year.”
Contrary to our expectations, the corporate tax rates in 2022 will probably remain stable and increase in 2023. Share prices will rise and corporate earnings will increase. Equity bull markets will persist.” RBC says “We see 2022 to be a strong year for U.S. equity markets, although with less moderate gains than what we experienced in 2021.”
We are still vigilant about margins but we do not believe it is sensible to take the worst of this given the solid track record companies have in managing cost pressures well before the pandemic.
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