A snippet projection from UBS on the benchmark S&P500 index.
Analysts at the bank’s base case forecast for the index is to 4,500 in December 2023 and then 4,700 in June 2024. Citing:
- second-quarter reporting season likely marked the trough in year-over-year earnings growth
- guidance for the third quarter was positive
- we expect S&P 500 earnings per share to be flat in 2023 and rise 9% in 2024
The forecast represents what UBS analysts call a “modestly higher profile for equities over the next six to 12 months”.
- see a receding risk of a recession in the US
- continue to favor equity market laggards whose valuations are lower and have scope to catch up
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That last bullet point is an interesting one. there are plenty of arguments to go with strong stocks, not laggards. An eternal argument that one.
This article was originally published by Forexlive.com. Read the original article here.