Stock Market Analysts Predict Sluggish Growth, S&P 500 to Remain Stagnant Until 2024
Stock Market Analysts Sound Warning Bells
A group of Stifel strategists, known for their accurate predictions in the past, have raised concerns about the future performance of the U.S. stock market. According to their latest analysis, they believe that the stock market has already reached its peak and will struggle to surpass the mid-4,000s until at least April 2024.
Challenging Road Ahead
The analysts attribute this projection to various factors, including the high price-to-earnings ratio and modest 2024 earnings. They also anticipate a normalized 5-6% yield on 10-year U.S. Treasuries in the mid-2020s, which could exert pressure on price-to-earnings ratios. These factors combined paint a challenging picture for the stock market’s future growth.
The Fourth Secular Bear Market
Labeling the current market conditions as the “fourth secular bear market” of the past century, the analysts expect the 2020s to be a flat and range-bound decade for the market. Drawing from historical trends, they predict that the S&P 500 will experience a “Secular Bear Market Lite” from its recent peak in December 2021 to around 2030. This means that the market will likely remain flat or range-bound for the next decade.
Stock Market Snapshot
As of last Friday, the S&P 500 closed at 4,224. This closing value reinforces the analysts’ prediction that the market will face significant resistance in surpassing the mid-4,000s in the coming years.
While these projections may not be welcomed news for investors, it is important to approach the stock market with caution and consider the potential implications of a stagnant period. As always, it is advisable to seek professional financial advice and make informed decisions based on individual circumstances.
