Investment bank giant Morgan Stanley believes that the S&P 500 will not visit its lows again in April and instead will come to new all -time heights within a year.
Andrew Sheets, Morgan Stanley’s Global Head of Corporate Credit Research, says in a new CNBC interview that he sees the S&P 500 in 2026 rising by almost 8%, driven by a favorable macro -economic background.
According to sheets, the stock market seems to have digested the American recession opportunities and it is ready to climb steadily higher in the coming months.
“We think that the inflation data will pick up a bit again, we do think that the growth will slow down. But more importantly, we think the stock market is future -oriented and we think the stock market will look ahead to a better change.
We think the dollar has been weak. We think it remains weak. That is a steel wind for income.
So we think the market will see better income revisions. We already think we are a bit priced [in] a recession, priced [in] The usual withdrawal back in the LOS points of April.
So a better change, a better trend on income revisions, tail winds from a weaker dollar should help to sustain S&P income. The Fed will cut the next 12 months. We don’t expect a recession. Usually the multiple does not decrease when that happens, not. And that is why we think that the S&P can go up to 6,500 against the middle of next year. “
From the end of Tuesday, the S&P 500 acts at 6,038 points.
https://www.youtube.com/watch?v=phydkm7tbhu
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