S&P 500 index chart in 1 day intervals. Source: Bloomberg
Binky Chadha, chief US equity strategist at Deutsche Bank, maintains his year-end S&P 500 forecast at 4,750 points. Its implementation implies a 30% increase in the index from Thursday, September 29 close, which amounted to 3,640 points.
In his opinion, the positioning of investors and the dynamics of the US stock market indicate excessive pessimism, and they say that all possible negative has already been taken into account in prices.
“I see the potential for a short squeeze,” the strategist told Bloomberg TV. „I’m looking forward to the number five bear rally, which is likely to be bigger than the previous number four bear rally.”
Binky Chadha is far from the only optimist on Wall Street. 19 out of 23 analysts polled by Bloomberg expect the S&P 500 to rise from current levels by the end of the year.