At least 2 US analysts have raised their S&P 500 forecast to 4600. Don't worry, be happy.
<p>Wells Fargo lifted its S&P 500 target to 4,60, citing:</p><ul><li>FOMC</li><li>seasonality</li><li>but did warn that defensives are signalling a 'yellow flag'</li></ul><p>Bank of America headline their note with 'Don't worry, be happy":</p><ul><li>raise their S&P 500 2023 year-end target to 4600 <ul><li>from 4300 previously</li></ul></li><li>Citing their "US Regime Indicator" and that it improved for the second consecutive month and is now in "Recovery phase"</li><li>"we believe Q2 2023 marked a trough in the profits cycle"</li></ul><p>BoA also had comments on the likelihood of a US recession:</p><ul><li>
difficult to see a US recession when the consumer is spending 4% more y/y</li><li>The consensus would say a very small recession, pushed out </li><li>
US consumers are still spending on goods & travel</li><li>credit-and debit-card payments are at higher levels</li><li>the quality of consumer assets remains very strong </li><li>"We anticipate a potential recession at some point in the future. Our own economists have really pushed that off."</li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
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