US -based Investment Bank Morgan Stanley, the S&P 500 index on the current situation and future expectations in his assessment, the index is not possible to decline to the bottom levels in April in the near future, on the contrary, it is possible to reach new record levels in the next 12 months.
2025 Economic Expectations
Andrew Sheets, Head of Morgan Stanley Global Corporate Credit Studies, said in an interview with CNBC that the S&P 500 index could gain approximately 8 %in 2026. Sheets said that this ascension includes positive developments in the macroeconomic environment. In particular, inflation may increase slightly, although economic growth is seen, but the markets can foresee this situation.
Sheets also pointed out that positive revisions have recently started in companies’ earnings. He said that the index has previously priced the possibility of a possible recession, and that low -level risks occur at low levels in April. For this reason, a more positive acceleration may be dominant in the coming period.
Another prominent element in Sheets’s statements was that the US dollar was weak. Stating that weak dollars may positively affect company earnings, Sheets believes that this will have a positive effect on the index. These estimates are of course in favor of crypto currencies because Bitcoin $109,290.39 Under the leadership of the markets, the markets perform parallel with US technology shares.
FED estimates
Sheets said that the US Federal Reserve (FED) is expected to go to interest rates in the next 12 months, that the risk of recession is low in this process and that this situation is reflected in the market.
Morgan Stanley President of Global Corporate Credit Studies Andrew Sheets: “Stagnation was priced in the markets. In the coming period, weak dollar, positive gain revisions and a better change rate will help to remain strong.
The S&P 500 index is currently 6.038. Although Sheets, although economic growth has experienced slowing down, he expressed his opinion that the index can move upward with the effect of moderate inflation and weak dollars.
It was stated that a forward-looking is generally adopted in the markets, so that the existing short-term negativities were reflected to the market prices. Investors can be more optimistic in the medium term with the recovery of earnings revisions and the FED’s supportive monetary policy expectation.
The prediction that new summits can be seen in the S&P 500 index until the middle of next year is carefully monitored, especially in the US economy and closely related changes in global financial conditions.
According to Morgan Stanley’s evaluations, the S&P 500 index has an upward potential. In particular, the Fed’s interest rate cuts, the weak course of the US dollar and the improvements in company earnings may be effective in the performance of the index. It is recommended that those who want to invest carefully follow the possible fluctuations and global economic developments in financial markets. It is stated that company statements do not constitute a definite guarantee for future market movements, so individual risk analysis is important.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
