Wall Street Strategists Bullish For 2019

This is one of my favorite posts to write every year as we get to look back on Wall Street predictions and see how they panned out. 

Last year, the strategists predicted a bull market for 2018 with an average target of +6%, 2850, for the S&P 500. Those predictions looked pretty good heading into the fourth quarter, but after a sharp decline, all of them badly missed the mark as the S&P 500 suffered through a terrible stretch and hit a year to date low of 2346 on Christmas Eve. The best of the best was Citibank's Tobias Levkovich and UBS's Ben Laidler who both predicted a slightly down year. Now let's take a look at their thoughts on 2019...

Predictions for 2019

After looking at all the Wall Street reports, here are the targets from 11 strategists.

The good news is that expectations are for the bull market to come roaring back with an average target of 3000 for the S&P 500. However, these numbers should be taken with a grain of salt because many were made before the sharp December Grinch decline with some offered up in September. I would expect many of the strategists, if not all of them, to revise their targets lower because there are a few that are way too high.

Let's take a look at the forecasts and I've also included their predictions from last year so you can see if they are bullish or even more bullish.

2019 wall street predictions

The Bulls

Binky Chadha of Deutsche Bank has the street's highest target currently at 3250 but that is from November 19th.

“It will take a while for the market to regain its prior peak” after rollercoaster equity trading in 2018, Chadha said. Volatility shocks take a while for equities to recover from, and buybacks “which have been the only consistent source of demand for equities in the cycle will once again become the primary driver. But they argue for only a gradual trend higher,” he added.

“The list of worries for the market is long and concerns about peak earnings are unlikely to dissipate until there are clear signs growth is steadying,” Chadha wrote.

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Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no ...

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