The Bank of America (Bofa) predicts that the S&P 500 index can reach its highest levels of all time at the end of the year, with the opinion that the endurance of corporate companies in the United States continues to increase. According to the evaluations of Bofa strategists Savita Subramanian and Jill Carey Hall, the index is likely to reach 6,300 at the end of 2024 and increase to 6,600 in the next 12 months.
Stock market estimates
Bofa strategists say that the endurance of the US economy continues and transparency is preserved in the post -epidemic period. Despite recent trade wars, policy uncertainty and increase in government bond rates in the US, stability of the companies’ balance sheet and operations was provided. According to strategists, despite the fluctuations in foreign exchange, inflation and interest rates, there was no significant deterioration in the profit margins of the companies in S&P 500.
BAFA strategists: “Despite the temporary trade agreements, large law proposals and decreasing recession risks, policy uncertainty is close to record levels and state bond returns are at the highest levels of the last decade. However, corporate transparency has not been broken. Since Covid, Foreign Currency, Inflation and Interest Volatility S&P has shown S&P 500 margins.”
It is seen that trust is reinterpreted in the markets and investors become more resistant to uncertainties. This is particularly related to the fact that large companies can adapt to crises.
Sp500 comments
Courtney Garcia, a senior asset consultant of Payne Capital Management, one of the investment consultancy companies, states that investors are more optimistic than the previous periods in the S&P 500 index. Especially in recent years, the impact of President Trump’s commercial sanction statements on markets has decreased.
Courtney Garcia: orum I think the market is no longer noticing this; these headings are constantly thrown forward. There is no sanction date in the near term, there is no sanction date in the near term.
According to Garcia, markets began to pricit possible interest rate cuts and regression in inflation. The positive course of economic indicators increases the risk appetite of investors. Of course, we can see it from good and graphics for these crypto currencies.
Markets got insensitive
It is stated that investors have started to act with a visible confidence despite the wavy economic environment. Recently, it has been observed that despite the uncertainties in trade policies, the markets can tolerate such developments and companies have adapted to changes. This situation, the S&P 500 index strengthens the future positive expectations.
Payne Capital Management manages a $ 1,06 billion asset, while closely following the developments in the economy and the market. According to the company officials, the recent approach of investors to the market has changed in a significant positive way.
According to Bofa and other experts, economic growth potential, expectation that interest rates can be reduced in the future, and the continuation of the downward trend in inflation supports the expectation of rise in the market. Global developments and the flexibility of companies’ market dynamics are shown as the main determinants in terms of the course of financial markets in the coming period.
Developments in the markets once again reveal the importance of companies’ ability to adapt to crises. The US’s corporate companies have survived despite challenging conditions and contributed to the increase in positive expectations in the markets. While emphasizing the importance of careful analysis and research before investing, it is reminded that changes in market dynamics may be effective in investor decisions.
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.
