Michael Wilson, US chief equity strategist at Morgan Stanley (Morgan Stanley), said the selling pressure on US equities has eased and that in the short-term bear market rebound,S&P 500 IndexExpected to increase to 4,150.
Wilson said that while the US consumer price index (CPI) remained hot in September, climbing to a 40-year high, he thinks inflation should have peaked. With a relatively high reference period, inflation is expected to fall rapidly next year, with lower expectations for terminal interest rates, supporting stocks until earnings are revised downward as expected, or upon arrival. of a real recession.
Wilson also said the bear market rebound should push the S&P 500 to around 4,150 points, which is around 13% higher than yesterday’s closing price (17th).
However, Wilson doesn’t expect the bear market in US equities to be completely over, with the S&P 500 likely to drop to 3,400 or less. Eventually, he sees a bear market around 3,000-3,200.
Bank of America (BofA) strategists believe that even though US equities are volatile this year, there is still an opportunity for long-term investors to usher in a silver lining. of Bank of America shows that in the next 10 yearsS&P 500 IndexThe average annual price return of 6% is the highest since May 2020, and after adding the 2% dividend, the total return is estimated at 8%.
Bank of America’s latest forecast represents a marked shift in its view of the market after previously predicting negative returns for the S&P 500 over the next 10 years.
