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Fred Cole

An editor at FOMOdrive

  • Jul 19, 2023
  • 2 min read

Credit Suisse predicts S&P 500 to rise to 4700 points

Market bull and bear with declining S&P price

It is predicted by Credit Suisse that the S&P 500 will reach 4,700 points by the end of the year.

It is anticipated by many strategists on Wall Street that the stock market will finish the year lower than its current position.

It is possible that the second quarter's reporting season will be a disappointment.

This year has seen a resurgence in the popularity of meme stocks.

The market is reminiscent of 2021 prior to the onset of the market crash in many ways.

According to Credit Suisse, the S&P 500 is projected to reach 4,700 by the end of the year. This is due to the decreased risk of a recession in the United States and higher-than-expected revenue forecasts for the largest technology companies, as reported by RBC.

Credit Suisse stated that the initial assumption is that the US will not experience a recession, inflation will stay strong close to its current rate, and the Federal Reserve's monetary policy will be tightened gradually.

Credit Suisse's outlook is in contrast to the outlook of most Wall Street strategists, who, according to a CNBC survey, anticipate that the US stock market will not be able to sustain its current levels over the next six months and will end 2023 lower than it is now. The average prediction of the surveyed experts is that the index will be at 4298 points by the end of the year.

The Wall Street Journal reports that companies are beginning to release their second quarter results, and it appears that this quarter will be a disappointment. Refinitiv data suggests that analysts anticipate the earnings per share of companies in the S&P 500 to have dropped by 8.1% compared to the same period last year.

Bloomberg reports that the market is exhibiting signs of a mania for meme-shares once more. Since the start of 2021, stocks of companies like Carvana, Marathon Digital, and Riot Platforms have skyrocketed by 500-700%. Other meme-related stocks, including GameStop, BlackBerry, and AMC Entertainment, have also seen significant increases.

The American Association of Individual Investors' surveys showed that this month, bullishness - the expectation that stocks will rise in the next six months - reached its highest level since 2021.

Since late 2021, investing in high-risk assets has seen a surge in popularity, shortly before the longest bear market in decades began in the stock market.

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