JPMorgam Makes the Bull Case for a Bullish Wall St.
In a note circulated over the weekend, JPMorgan Chief US Equity Strategist Dubravko Lakos-Bujas, stated,
The equity market is facing one of the best backdrops for sustained gains in years. After a prolonged period of elevated risks (global trade war, COVID-19 pandemic, US Election uncertainty, etc.), the outlook is significantly clearing with the business cycle expanding and risks diminishing…”
As reported by Yahoo Finance, the average Wall Street call for the S&P 500 Index in 2021 is 4,150. From Friday’s closing value of 3,709 that represents a rise of 11.9%. JPMorgan’s call for 2021 is significantly higher at 4,400, a rise of 18.6%. The JPM strategist suggested a range of 4,200 to 4,600 around his target.
The JPMorgan strategist cited several assumptions that underlie his thesis: 1. World Central Banks continue to supply easy money; 2. Vaccine delivery runs smoothly in the US; and 3. the US ends-up with a divided government after the run-off elections in Georgia.
The S&P 500 is a capitalization-weighted index of stocks price performance in the US.
Past performance in not a predictor of future results.
The opinion of the strategist cited above is his and his alone.