‘All The Stars Are Aligned’: One Bank Says S&P May ‘Overshoot 3,500’
"In our view, in the ongoing rotation into cyclicals, the S&P 500 could definitely overshoot the February 2020 all-time high", SocGen's Sophie Huynh writes, in a lengthy Q3 US equity outlook piece released on Wednesday.
The bank's view remains that the benchmark may rally beyond 3,500 between now and the end of the year, before ultimately pulling back to fair value, which SocGen says is around 3,300.
A move up to 3,500 would represent a ~60% gain from the March COVID panic lows. Remember,
A bit more context required re: “If the Fed is reluctant to go to negative rates, will it prefer to buy equity ETFs to facilitate balance-sheet repair instead, in case another market rout were to develop?”. Whose balance sheet would the Fed be repairing, and how would the ETF buy action support their primary mandate?