Wall Street Bull Gives Highest 2024 S&P Forecast Yet
One of the biggest bulls on Wall Street believes the S&P 500 is going to surge by 13% in the upcoming year. Tom Lee, the head of research at Fundstrat, has projected the benchmark index is going to end by 2024 at 5,200 as dropping inflation leads to the easing of financial circumstances, and the economy in the United States yet again skirts recession.
Lee’s target has been the highest among all other strategists as per Yahoo Finance, which surpasses the BMO Capital Markets and Deutsche Bank’s call for 5,100 for the S&P 500 by the end of 2024.
Lee predicted a 4750 for S&P this year, which he explained as a higher than consensus prediction mainly because he thought inflation would be falling more on the others and the US economy would not slip into recession.
“2023 was a year where the [stock market] technicians got it right … And economists got it wrong,”
Lee said at a 2024 outlook roundtable on Thursday.
“In 2024, I think that this is actually still a residual game plan … the technicians will get the year right and the economists are going to get the year wrong.”
Market breadth is one of the major components of Lee’s thesis, as some of his vital sector picks include real estate, small caps, and financials, both of which had lagged the market throughout the 2023 rally.
In the previous year, Lee had his big call on tech. He remains confident in this sector this year and is not giving up on the Magnificent Seven amid a massive surge in 2023, saying they have the capability to perform in broader markets.
“When it comes to positioning, no one owns financials… No one’s really long, small caps. You know, there’s a lot of upside.”
One of the major risks to his prediction is if the US economy moves into recession; however, that might not even hold back on the stocks for the next year, he adds.
“That’s not a thesis killer, because that means the Feds gonna cut more,” Lee said. “So you shouldn’t be that fearful.”
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