Monday , 24 October 2016

What Do Wall Street’s Pros Forecast For S&P 500 In 2016?

Wall Street’s stock market gurus are still looking pretty bullish as manystock-indices-2 continue to forecast double-digit gains [13% to 20%] over the next year. 

This edited commentary is from which can be read in its original format* HERE.

Strategists (strategists publish targets for stock markets as a whole from their big-picture analysis i.e., top-down analysis) covering the markets are not as bullish as the analysts covering individual stocks (who publish price targets on individual stocks based on their analyses of the companies they cover i.e. bottom up analysis).

After reviewing 11,295 ratings, FactSet’s John Butters found that:

  • the analysts’ expectations…imply that the S&P 500 will
    • rocket 20% to 2,317 [by the end of 2016].
  • The strategists…see the S&P 500
    • climbing a more modest 13% to 2,180 [by the same date].

Who will be correct?” Butters asks.

On average from October 2013 through September 2014, both the industry analysts and the market strategists underestimated the forward 12-month value of the S&P 500,” he observed. “However, using the target price estimates from exactly one year ago (September 30, 2014), both the industry analysts and market strategists overestimated the actual value of the index on September 30, 2015.

To answer Butters’ question, we’ll just have to wait and see.

The above article has been edited by Lorimer Wilson, editor of (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here – register here) for the sake of clarity ([ ]) and brevity (…) to provide a fast and easy read.