Morgan Stanley analysts are said to predict that US shares will hit a huge all time against the middle of next year.
The brokerage company out That the S&P 500 can decrease in the third quarter of this year, but eventually reached 7,200 points against mid -2026, an increase of more than 13% compared to the current level, Reuters reports.
Morgan Stanley Chief Investment Officer Mike Wilson quotes Bullish MarktMomentum Driven by strong income and expected reductions of Fed Rate as the most important catalysts for the new shares heights.
Wilson says,
“With income on a solid foot until next year and the FED closer to lowering the rates, ratings can be supported around the current levels (~ 22x) while we think about the outlook of 12 months.”
However, Morgan Stanley warns that the rising treasury yields, especially if the 10-year-old note is greater than 4.5%, can lead to an underperformance of some shares, such as small-cap shares, which are more sensitive to rates.
The brokerage also says that an increase in costs and inflation will be released later this year as a result of President Trump’s rates, who can influence the profit margins of companies.
Finally, Morgan Stanley says that the stock market can dive temporarily from mid -July to August as a result of seasonal trends.
Nevertheless, the brokerage company says that the stock market dips will probably buy opportunities in the third quarter, predicting falls and that consolidations will be temporary.
From the end of Wednesday, the S&P 500 acts at 6,358 points.
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