Until a few weeks ago, Wall Street believed that the US stock market was already past its worst and only a new uptrend lay ahead. However, since the United States Federal Reserve (Fed) interest rates raised again, the situation completely changed.
Now, Goldman Sachs thinks the S&P 500 index will finish around 3,600 points for the year, when the previous target was 4,300 points. Considering the current price, a fall of around 2% is assumed in the new projection.
The strategists led David Kostin stated that the higher interest rate scenario in the Goldman Sachs valuation model supports an index-price-earnings (PE) ratio of 15 times, up from 18 times previously.
“Our economists now predict that the FOMC will raise the policy rate by 75 basis points in November, 50 basis points in December and 25 basis points in February to a maximum funds rate of 4.5%-4.75%”which was indicated in the report.
The investment bank said so too risks to its latest forecast remain skewed to the downside due to rising recessionary contractsa scenario that would reduce corporate profits, widen the yield gap and push the benchmark US equity index to a low of 3,150 points, the same level as in July 2020.
Invest in the S&P 500 from Argentina
For invest in the S&P 500 from Argentinasimply opening a primary account in a stock company regulated by the National Securities Commission is sufficient Bull Market Brokersa free process that will not take more than five minutes, and, after depositing the required funds, receive Cedar of listed funds.
Los Argentine Depositary Receipts or Depository Receipts They are instruments equivalent to buying the basic ETF listed abroad, but they can be operated in pesos (BCBA: SPY) and follow the evolution of the CCL dollar, so they allow to avoid the risk of Argentina and, at the same time, hedging against. exchange rate jump in the end.
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