An avid reader and enthusiastic writer, Verolian recently chose to dedicate his time doing freelance writing. He holds a degree in English Literature and is experienced in the future of finance, creativity, literature, and innovation tucked under his belt. Verolian crafts engaging and compelling content for Blockchain and Crypto audience.
JPMorgan expanded its S&P 500 prediction which now stands at 3,200 from initial 3,000. The new target exceeds that of popular stock market bull and Fundstrat co-founder Thomas Lee who initially set the 3, 125 level.
JPMorgan has expanded its S&P 500 prediction for the remaining half of 2019. The company’s latest appearance comes behind growing rumors leaning towards the conclusion of the U.S-China trade rivalry and the Federal Reserve accepting a slightly favorable monetary policy. The latest Fed Monetary Policy is anticipated to lead to borrowing costs for companies as well as firms, intensifying the market boost.
JPMorgan pushed its forecast for the S&P 500 to 3,200, overcoming the 3, 125 predictions initially set by Thomas Lee, a popular stock market bull and Fundstrat co-founder.
Speaking regarding revisited forecast, Dubravko Lakos-Bujas, the U.S’s Chief Equity Strategist for JPMorgan, said in CNBC’s featured report that:
“We are raising our S&P 500 12 month price target to 3200 as our upside case for equities is increasingly in play with Fed and Trump easing on policy while investor positioning/sentiment remains low.”
Reduce Economic Tension to Promote the S&P 500
Early this year, there was mushrooming tension that the Fed would increase interest rates, intensified with the rise in the U. S-China trade war that could nurture a breeding ground for a recession. These anticipations have all disappeared now. The statement by JPMorgan acts as the final optimism that the United States’s bull-run is more than ready to extend past 2019 after recently writing history for offering job creation for the longest consecutive years.
Besides, the company is highly confident regarding a trade deal between China and the U.S before the end of 2019, which will eliminate the trade frictions between both nations. The confidence generated from the recently concluded G20 summit in Osaka, Japan, where the two presidents met. The fear between the two nations had escalated in May when Presiden Donald Trump made true his threats and imposed higher tariffs on Chinese imports.
Bullish Market Forecast
The market forecast by JPMorgan is now one of the most promising predictions on Wall Street. In fact, it’s far ahead of Tom Lee’s Fundstrat’s prediction for 7% stock campaign between now up to the end of the year to 3, 125. Fundstrat cofounder’s forecast in May Central Banks will feature on their monetary policies, indicating:
“The market is comfortable with this earnings recession, and the Fed has proved its message is much more market-friendly.”
Sometimes, Fundstrat encourages potential investors to purchase affordable stocks in firms with trustable dividends as well as earning potential, while avoiding stocks with unattractive volume.