It’s a bit of an intended wordplay. The S&P has now risen more than 51% from its March 9 lows and many are expecting for a correction although this could be preceded first by further move to the upside; they say the rally still isn’t over. As the markets rallied, more and more have become more bullish, however, pushing them to revise their price targets for S&P for the end of the year. Yesterday, the broad market index closed at 1,028. Whether we close higher or lower than this at the end of the year is a question that will remain unanswered until then. Having said that, price targets of companies have been revised up and down and here’s what the current predictions look, courtesy of Bespoke:
Comparing prediction from the current level and averaging them, the table shows us that some of the biggest banks on average are slightly bearish. However, notice the big bearishness from Morgan Stanley who is predicting S&P to finish at 900 this year. Without this number, we would be standing on the opposite side. We’re bullish by some 3-quarters of a percent. Following that, we then predict a 1,035 ending.
Given that, I don’t think we can rely much on this. As we saw, one number can make a big difference. Plus, it’s the prediction of 10 strategists – too small a number for us to be able to deduce a reliable prediction and plan of action.be
The Bespoke post here.