S&P 500: Tug of war between resilience and recessionary forces to bring 4,500 year-end target – Deutsche Bank
Economists at Deutsche Bank expect the S&P 500 Index to close the year near current levels.
The typical pullback underway can extend
With widespread expectations that this current cycle was ending, a positioning squeeze was a key driver of the most recent rally. Now, after the squeeze, there is a tug of between factors imparting resilience and recessionary forces.
Near term, with a number of potential negative catalysts, the typical pullback underway can extend.
Further out, the question is whether growth and inflation surprises can continue. We see the bar low for surprises on growth, but not for positive inflation surprises.
Our house view remains that of a quick sell-off and rebound to year-end, leaving the S&P 500 close to current levels, with year-end target of 4,500.
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.