All articles tagged with #bullish outlook
PEPE memecoin has dropped 17% in 24 hours amid increasing selling pressure, declining open interest, and market fears, though investors continue to buy, and technical indicators suggest potential for a rebound despite the risk of further decline to support levels.
The S&P 500 gained 4% in May, making it one of the best Mays since 1950 and supporting a bullish outlook for 2024. Historically, strong Mays often lead to positive year-end returns, with a 70% chance of gains averaging 8.6%. Stock Trader's Almanac forecasts 8-15% gains for the year, potentially reaching 15-25%. The market's resilience is attributed to reduced uncertainty from known political candidates and historical trends favoring incumbent parties.
Bank of America's US equity and quantitative strategy team raised its year-end target for the S&P 500 to 5,400 from 5,000, joining other bullish predictions for the benchmark average this year. The optimism is fueled by increased earnings outlook and a more bullish outlook for the US economy, although a pullback is expected. The team also anticipates a broader group of equities to drive the end-of-year rally, with non-tech stocks expected to rebound in the second half of 2024.
Strategists at Oppenheimer Asset Management predict that the S&P 500 index will reach a record high of 5,200 by the end of 2024, representing a nearly 13% gain from its current level. They anticipate a transition in 2024 as the Federal Reserve shifts from a restrictive monetary policy to an easier stance, leading to lower interest rates. Despite expectations of slowing economic growth, Oppenheimer remains optimistic about corporate revenues and earnings, projecting S&P 500 companies to reach $240 per share in earnings. This bullish outlook aligns with other Wall Street analysts, including Fundstrat's Tom Lee and Ed Yardeni of Yardeni Research.
Oppenheimer Asset Management's chief strategist, John Stoltzfus, predicts that the S&P 500 will reach a record high of 5,200 points in 2024, representing a nearly 13% increase from the current level. Stoltzfus joins Fundstrat's Tom Lee as one of the most bullish forecasters for the coming year.
RBC Capital Markets predicts that the S&P 500 will reach a new record high of 5,000 by the end of next year, joining other bullish forecasts for 2024. Strong investor sentiment and buoyant equity valuations are expected to drive the index to new heights. Despite relatively high Treasury yields, analysts believe they do not pose a threat to the appeal of equities. The forecast is based on five models that consider sentiment, valuation and earnings, the economy, politics, and the relationship between stocks and bonds. The US presidential election is seen as a potential source of uncertainty for the stock market in 2024.
CNBC's Jim Cramer agrees with Bank of America's bullish outlook for the S&P 500, stating that it could reach 5000 by the end of next year. While he agrees with the sentiment, he is non-committal about the factors that could drive the index to that level. Cramer is optimistic about large-cap stocks other than the dominant tech stocks and believes that mergers could be the lifeblood of the next bull market. Bank of America strategist Savita Subramanian anticipates 2024 as a "stock picker's paradise" and believes that the market has already absorbed significant shocks and adapted to higher rates and inflation.
Bank of America's head of US equity & quantitative strategy, Savita Subramanian, has raised the year-end target for the S&P 500 to 4,600, reflecting about 3% upside from current levels. The bank's research team no longer sees a recession for the US economy, indicating that markets are in the recovery phase. Bank of America believes that the equal-weighted S&P 500 will outperform the standard index, and that opportunities lie in companies that haven't experienced the same run-up as tech stocks. The bank's bullish outlook is supported by historical data showing that when strategists predict a decline in the S&P 500, the index tends to perform better than expected.
Investment firm Berenberg Capital Markets predicts a bullish outlook for MicroStrategy (MSTR) due to the upcoming Bitcoin halving. The firm believes that MicroStrategy's value, primarily derived from its significant Bitcoin holdings, could see a significant increase in price during a Bitcoin halving rally. Previous halving cycles have seen Bitcoin's price surge by at least 682%. The research note also highlights the growing institutional adoption of Bitcoin, citing recent spot Bitcoin ETF applications and positive remarks from BlackRock CEO Larry Fink. Shares of MicroStrategy have gained nearly 180% since the beginning of 2023, while the price of Bitcoin has increased by 84% since the start of the year.
Bitcoin investors remain optimistic despite the recent price weakness, as positive macroeconomic trends and regulatory support fuel hopes for a considerable bull run in the upcoming months. Professional traders are using options instruments, such as the "risk reversal" strategy, to hedge losses from unexpected price swings. This strategy involves buying protection from a downside move by buying put options and selling put options to net returns above a certain level, while also buying call options for positive price exposure. This allows investors to bet on Bitcoin's price being above a certain range while gaining access to unlimited profits and a maximum capped loss.
Bank of America analysts predict that gold prices could hit record highs, with an initial price target above $2,100 an ounce, due to strong fundamental prospects and bullish technical outlook. The lead author of the report, Paul Ciana, believes that gold's rally to its all-time high of $2,078 could signal the start of a two-year bull run, which could push prices above $2,500 an ounce. However, there is a risk that the market could be seen as overbought as it makes a run to $2,078. Meanwhile, silver also has room for prices to move higher, but investors should be cautious of a correction at current levels.