Here’s How High The Stock Market Will Go In 2021, According To Wall Street’s Experts
- Date: 22-Dec-2020
- Source: Forbes
- Sector:Financial Markets
- Country:Middle East
Here’s How High The Stock Market Will Go In 2021, According To Wall Street’s Experts
Topline
After a year of massive volatility, the bull market's record streak has room to grow next year, Wall Street observers say; here's how high top Wall Street firms expect the broad-market S&P 500 will climb in 2021.
A pair of traders share a laugh on the New York Stock Exchange floor.
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Key Facts
In a weekend note to clients, Goldman Sachs said it expects the S&P to end next year at about 4,300 points (indicating 17% upside), an admittedly "optimistic" forecast contingent on increased corporate earnings and a low-interest rate environment that remains favorable for corporations.
Hardly anyone's as bullish as Goldman though; Morgan Stanley, Wells Fargo and LPL Financial all have end-of-2021 targets for the S&P of 3,900, representing about 6% upside to current levels.
Wells Fargo and LPL are confident corporate earnings will surge close to 30% next year, helping to ground some of the outsized valuations in growth stocks that have pushed the average S&P valuation to more than 30 times realized annual earnings–up from about 22 last