Silver as an investment

Credit Suisse “Climbs The Wall Of Worry”, Raises S&P Target To 2,500 From 2,350

zerohedge.com / by Tyler Durden / Mar 20, 2017

Following bearish reports from Goldman (which tactically downgraded stocks to Neutral for the next three months just hours before the Fed rate hike), RBC and JPM’s head quant Marko Kolanovic over the past week, overnight Credit Suisse decided to take the other side of the trade and hiked its year end forecasts for the S&P500, and pretty much every other risk asset, noting that it is happy to “climb the wall of worry”, and prefers equities to bonds. The reason for the Swiss bank’s optimism, as strategist Andrew Garthwaite explains, is that “following the reaching of our mid-year S&P 500 target, we raise both our mid-year and year-end S&P targets to 2,400 and 2,500, respectively (from 2,350 and 2,300).” He adds that “our clear-cut view is that investors should be overweight equities versus bonds and credit. We now see less chance of a second-half correction in equities and thus raise our mid-year and year-end targets to 2,400 and 2,500, from 2,350 and 2,300, respectively. We stick to our mid-year targets of 3,500 on Euro Stoxx 50 and 20,500 on Nikkei 225.”

In terms of near-terms moves, CS – unlike Goldman – sees “a clear-cut risk that we get an overshoot to the upside in equities that then reverses later on; more realistically, this reversal is likely to be a very late-2017 or 2018 event.”

Some more details behind the bank’s revised targets:

“We leave our mid-year targets on the Euro Stoxx 50 and the Nikkei 225 in place at 3,500 and 20,500, respectively, but on the back of the change to our S&P 500 target, we also increase our year-end targets for the Euro Stoxx 50, the FTSE 100 and Nikkei 225 up to 3,700, 7,500 and 21,000, respectively (from 3,450, 7,000 and 19,800). We also revise our FTSE 100 mid-year target to 7,400 from 7,100.”

READ MORE

The post Credit Suisse “Climbs The Wall Of Worry”, Raises S&P Target To 2,500 From 2,350 appeared first on Silver For The People.