Credit Suisse sees stock rise despite pessimistic forecasts
2022.12.22 08:39
Credit Suisse sees stock rise despite pessimistic forecasts
Budrigannews.com – The strategist at Credit Suisse, on the other hand, is remaining neutral while the majority of equity strategists in the United States, including those at Morgan Stanley, Goldman Sachs, and Bank of America, continue to warn their clients that U.S. stocks are likely to revisit their lows in 2022.
The strategist at Morgan Stanley stated earlier this week that he is becoming more and more convinced that the will fall below the 3,000 mark next year. Even the strategist at JPMorgan, who was one of the biggest bulls on Wall Street in 2021, has recently turned bearish and reduced the bank’s risk exposure.
The Chief U.S. Equity Strategist of Credit Suisse is well-known as a bull on Wall Street. He was also one of the few to remain bullish on U.S. stocks in the final weeks of 2021 despite rising valuations. After a year, he is one of the few equity strategists who advocate for strong stock returns in the United States.
The strategist stated in his most recent note to Credit Suisse’s clients that rising consumer confidence is positive for stocks. He “put the blame” for the rise on falling gasoline prices, rising wages, and a plentiful supply.
“Wage growth is expected to remain steady at elevated levels, labor market tightness is likely to persist, and CPI is expected to fall 4-5% over the next year, resulting in further upside in confidence measures.” Typical cost for many everyday items changes for retired people, and numerous administration laborers, will add further to purchaser buying power,” he wrote in a client note.
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The strategist came to the conclusion that this kind of environment “should lead to stronger spending, delay the onset of the next recession, and extend the market rally.”
Yesterday, the S&P 500 closed at 3,878.44, down 18.6% year-to-date.
