S&P Eyes $3,000
JP Morgan’s top market guru has put an ambitious new price tag on the S&P 500 index, saying that a new high at $3,000 could be on the cards by as early as the end of May. Sounds peachy, but can it be done?
Strategist, Marko Kolanovic, has taken JP Morgan’s yearly price target for the S&P 500 and moved it forward a whopping 8 months in light of the global market’s stellar comeback in the first quarter. However, his $3,000 target does come with a few strings attached.
Namely; the conclusion of a US china trade deal in the near future, and a Brexit that is not too disruptive or a substantial enough delay in proceedings to calm some of the rising uncertainty in the Eurozone. That may be a tall order on the second one, Marko.
Nevertheless, this week has been a strong one for global markets which have ticked up almost 2% since Monday. The S&P has also appreciated 1.4%, driven by a surge in trade war sentiment and a bullish technical indicator, known as a ‘golden cross’.
This moving average crossover is a generally accepted sign of a confirmed bull trend which may well entice more investors back into equities. Marko also mentioned that hedge fund exposure to equities has been at an all time low and that a number of their systematic buying strategies may be triggered in the not too distant future.
For now, the S&P’s 5 day winning streak is still in force, but let’s not discount the possibility of a trade deal or Brexit upset spoiling the party. We’ll have to wait and see.