Optimism reigns among advisors with most betting on further S&P 500 gains
The US stock market faced a severe test yesterday, with key benchmarks plunging as investors digested a perfect storm of bearish economic and market headlines.
But notwithstanding all the ugly happenings on August 5th, a newly released survey suggests advisors are expecting a better picture to emerge over the rest of the year.
The latest InspereX Pulse Survey of 487 financial advisors revealed a predominantly optimistic outlook for the S&P 500 through the end of 2024.
Out of all the respondents, four-fifths (78 percent) said they expect further gains with 43 percent predicting a 5 percent rise, 30 percent forecasting a 10 percent increase, and 5 percent expecting a surge of 20 percent or more.
On the flip side, a minimal 9 percent foresee a potential 10 percent correction, while 1 percent predicted a 20 percent decline. The remaining 12 percent of advisors stood on the fence as they expected the S&P 500 to remain flat.
“The bulls have spoken: they see more upside in the S&P 500 for the rest of the year, which they expect will be exceeded by the Magnificent Seven,” Chris Mee, managing director at InspereX, said in a statement.
Nearly three-fifths of respondents in the survey (56 percent) were of the conviction that the “Magnificent 7” stocks – namely Apple, Amazon, Google parent Alphabet, Facebook parent Meta, Microsoft, Nvidia, and Tesla – will lead the broader market in gains by year-end.
It’s worth noting at this point that InspereX’s survey of advisors from independent broker-dealers, RIAs, banks, regional firms, and wirehouses happened in the week between July 18 and July 15, during which the S&P 500 topped 5,600 to reach an all-time high.
When asked which asset classes they expected to perform well, a strong 82
Read more on investmentnews.com
