Recently, U.S. stocks have risen to historical highs many times, which has drawn more bubble vigilance. JPMorgan (Xiao Mo) believes that there are still a number of factors that will push up US stocks, and that stock prices will fly higher in the future.
Strategists headed by Dubravko Lakos-Bujas believe that economic restart and new financial support are currently the focus of attention.They reiterated that the S&P 500’s target price for this year is 4,400 points, which is equivalent to another 12% increase from current levels.。
Here are seven reasons why JPMorgan Chase saw a rebound in spending and helped drive the stock market up:
1. Restart quickly
JPMorgan Chase said that the sharp drop in the number of new cases of new coronary pneumonia and the continuous introduction of vaccines have left the US economy only a few months away from restarting most of the economy. The pandemic will “effectively” end in the next 40 to 70 days.
2. New stimulus package
About 30 trillionUSDThe stimulus plan helped the global economy survive the epidemic, and the Democrats are working to pass another 1.9 trillionUSDPlan. JPMorgan Chase believes that this will help the economy accelerate the rebound, especially prioritizing employment.
3. The potential strength of savings
JP Morgan Chase pointed out that American households already have record cash reserves, with a total savings of approximately 11 trillionUSD. Once these funds are released, they will help small businesses recover.
4. Surging wealth
JPMorgan Chase estimates that the total value of rising assets such as home equity, pensions and 401k plans will reach 48 trillionUSD。
5. Healthy household debt levels
JPMorgan Chase pointed out that the US household debt repayment rate is at a 40-year low, and the delinquency rate of consumer loans is also at the lowest level in history.
6. The job market improves
JPMorgan Chase believes that a decline in the unemployment rate, an increase in average weekly working hours, and a possible increase in the minimum wage will all contribute to a healthier labor market.
7. Millennials
JPMorgan Chase said that a record 5 million millennial residents will help real estate emerge a new turning point. The increased spending of this group is expected to transfer more savings to the economy.
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