The LPL study says that after a 5-10% rise in the first quarter, the US market has a chance of continuing to rise further throughout the calendar year by at least 12.4%. Strategists rely on historical parallels. There is a grain of reason in this, since the American stock market has a long history, which in many ways can be considered indicative and informative. The observations were based on a colossal layer of time by market standards from 1950 to 2020. This is more than enough to warrant conclusions.
In 2020, the S&P 500 is up 16.9%. Since the beginning of 2021, the indicator has expanded by 9.41%, and this may well be a signal that further the American stock market will grow further.
From a fundamental point of view, there is quite a basis for this. It consists in monetary and fiscal stimulation, when the aggregate of financial resources is directed to the real sector of the economy and to support the population and business. This money gives a quick economic effect, which means that the business is quite capable of developing and expanding.
The S&P 500 index holds the target of growth by 4200 points in the medium term, the more ambitious target for the long-term horizon is the mark of 5000 points.
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