Analysts at US investment firm Oppenheimer expect much higher for the benchmark US equity indes. In breif:
- S&P 500 Forecast: Predicted to hit 7,100 by end-2025, driven by sustainable monetary policy, strong economy, and favourable labour markets.
- Earnings Growth: S&P 500 earnings projected to grow 10% to $275 in 2025 ($250 in 2024), with a forward P/E of 25.8x.
- Key Sectors: Focus on tech, consumer discretionary, industrials, financials, and communication services; small- and mid-cap stocks likely to rally amid Fed rate cuts.
- AI as a Growth Driver: AI seen as transformative, improving efficiency and productivity across sectors while addressing global challenges.
- Market Sentiment: Bull market expected to continue in 2025, supported by sector rebalancing, economic activity, and AI growth potential.
- Cautionary Note: Economic "utopia" is overstated, but markets rest on a strong foundation.
On AI, they say it's a transformative force, analagous to the automobile:
- "This technology could drive efficiency and productivity improvements across all sectors and contribute to solving some of the world's challenges"
When your candlestick charts meet the automobile.