By the end of 2024, Bank of America predicts the S&P 500 will hit a record of 5,000

 By the end of 2024, Bank of America predicts the S&P 500 will hit a record of 5,000

Bullish analysts at Bank of America Corp. predict that by the end of 2024, the S&P 500 will have closed at a record 5,000.

As U.S. corporations face rising interest rates and macroeconomic shocks, analysts at Bank of America Corp. are joining an increasing number of bullish Wall Street predictions in predicting that the S&P 500 will reach a new high in 2024.

Under Savita Subramanian's leadership, US stocks are expected to perform well in 2019—"not because we expect cuts by the Federal Reserve, but because of what the Fed has achieved." "The market has already weathered significant geopolitical shocks," one of his pieces said. The message from Tuesday said, "American exceptionalism remains intact."

By the end of 2024, they predict that the S&P 500 will finish 10% higher than it did on Monday, at a record 5,000. The experts predicted that 2019 would be "a paradise for stock pickers."

Subramanian concurs with some of the most popular names on Wall Street, such as Manish Kabra of Societe Generale SA and David Costin of Goldman Sachs Group Inc., who both see the S&P 500 on the verge of all-time highs. Barclays PLC strategists anticipate that equities will beat bonds. Even the ardent Wall Street bear Michael Wilson of Morgan Stanley improved the notion he had for the benchmark the following year.

The S&P 500 has increased by 18% so far this year as investors become more confident that the Federal Reserve will soon stop raising interest rates while the economy is still strong. For the first time since the conclusion of the COVID epidemic, profits slowed during the third-quarter reporting season, but the earnings forecast is still favorable.

BofA strategists cited their confidence based on the bank's own analyst poll, which characterizes the current climate as a Goldilocks one: steady but neither too hot or cold. According to Subramanian, a quant who increased his S&P 500 estimate to 4,600 in September after a strong run in 2023 shocked expectations, earnings might increase even if economic growth slows.

Subramaniam was generally positive about equities going into 2023, but he cautioned against investors being forced into the S&P 500 and losing out on possibilities elsewhere.

This week, BofA technical analyst Stefan Suttmeyer said in a separate note that when U.S. equities get closer to significant positive levels, they have "much more upside potential". According to him, institutional asset managers still have additional "buying power" for the final-quarter surge. However Goldman analysts cautioned that there is a greater chance of short-term disappointment given the recent rise.

The majority of investors, according to Subramaniam, are still generally bearish. A report dated November 21 said, "Bull markets typically end with high confidence and enthusiasm - we are far from that.”