Stock-market strategists on Wall Street raise year-end targets - here's why
retail sales remain strong, and the Federal Reserve is expected to hold interest rates steady this week. For investors with money on the line, the gloom on Wall Street creates a dilemma.
It’s a reminder that the Fed’s efforts to tame inflation still threaten the economy. At the same time, stocks overcame the same threats in 2023 and now, with Corporate America’s improving profit outlook and the Fed itself seeing no signs of a recession, some market watchers are concluding that the bears are going to be wrong again.
Different Pressures To Sarhan, an equities bull who favors technology and growth stocks, it all drives home how the stakes are different for those who monitor the market — like strategists — and those who manage client money. “The pressure is extremely different as a money manager," he said.
“Not only do you have to be right, but you must beat the market as well — or clients will walk out on you." A slew of Wall Street strategists have been forced to ratchet up their forecasts as stocks extended their climb this year. Bank of America Corp.’s Savita Subramanian, Goldman Sachs Group Inc.’s David Kostin and Citigroup Inc.’s Scott Chronert also boosted their 2023 outlooks in recent months to keep up with the rally.
“You could argue that everyone who’s upping their estimates and adjusting their market calls isn’t necessarily wrong, they were just early," said Oliver Pursche, senior vice president and adviser at Wealthspire Advisors. “Listening to someone you disagree with is much more valuable than simply seeking confirmation bias from someone else who views the market the same way you do." With the Fed nearing the end of its tightening cycle, Pursche is optimistic about the stock market and the economy as the
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