Tuesday, January 3, 2023
HomeLife Insurance10 Inventory Market Predictions for 2023

10 Inventory Market Predictions for 2023

10. Tug of Struggle

RBC Capital Markets’ year-end 2023 S&P 500 goal of 4,100 is unchanged (about flat with latest ranges), though the agency lowered its 2023 S&P 500 EPS forecast by roughly 4% to $199, Lori Calvasina, U.S. fairness technique head, famous on a Nov. 30 podcast.

“We proceed to anticipate uneven circumstances in U.S. equities over the following few quarters,” she added, noting the agency prefers U.S. equities over non-U.S. equities, worth shares over development, and small-cap over large-cap firms.

As for the S&P 500, she mentioned, “Our most optimistic take a look at places the index at 4,600 — our ‘bull case’ if our ‘base case’ of 4,100 is simply too conservative.”
RBC’s S&P 500 EPS forecast contains expectations for sub-1% actual GDP all through 2023, a Shopper Worth Index that falls to three.1% at year-end 2023, just a few Fed fee cuts within the second half, and the 10-year Treasury yield returning to three.5%, she mentioned.

“We proceed to see shares as caught in a tug of battle between the bulls and the bears,” mentioned Calvasina, noting the S&P 500 is usually down a month earlier than remaining fee hikes, which the agency expects in March. However, the outlook for investor sentiment, moderating inflation and barely decrease rates of interest counsel bullishness, she mentioned.

(Picture: Elnur/Adobe Inventory)



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