After the corrections of over 20 % in the S&P 500 and the Nasdaq, it may hardly be believed, but that Wall Street is optimistic about the financial markets. Should the S&P 500 recover on the median of all price targets predicted by Wall Street banks, the index could increase by 26 % by the end of the year.
Is the bear market already over?
Deutsche Bank is the most optimistic large bank with regard to the S&P 500. Despite all the challenges, you can expect a course of 7,000 points by the end of 2025, which corresponds to an increase of around 40 %. Even more conservative forecasts such as those of Oppenheimer and Bank of America are 5,950 and 5,600 points, which also indicates a positive year of the year.
However, RBC Capital Markets warns for caution and emphasizes that the forecasts of the banks should not be taken too seriously.
Lori Calvasina from RBC explains:
“Consider our price targets as a compass, not as a GPS. It is an instrument for signaling via the expected market direction. As always, we adapt our goals as soon as the information changes.”
Uncertainties remain
It should not be forgotten that Donald Trump has just started his office as President of the United States. Experts criticized his approach, especially when dealing with import tariffs. Many consider his measures to be irresponsible and risky.
Is there still a higher -level strategy? If the answer is “yes”, the tariffs could appear in a different light. It is possible for Trump to change his strategy as soon as certain goals have been achieved-such as reducing the return on 10 years of government bonds. It seems unlikely that Trump deliberately falls the world into a deep recession, only to then disappear from the stage himself. Is it perhaps too easy to interpret the situation like this?
(Tagstotranslate) Donald Trump