By Mark Kolakowski
The S&P 500 Index (SPX) should reach a record 2,800 by the end of 2018, more than 7.5% above the open of trading on Monday, based on the average forecasts from nine market strategists polled by Bloomberg. Some strategists forecast stocks could rise as much as 27 percent. Those gains would create the longest bull market on record. Key reasons for their continued bullishness, per Bloomberg: even without tax reform, corporate earnings in the U.S. are rising at a double-digit pace, and the global economy is showing its most consistent growth in more than a decade.
Most of these strategists did not put assumptions about tax reform into their forecasts, Bloomberg notes. The most bullish tax reform scenario is offered by strategist Keith Parker of Swiss banking giant UBS Group AG. Parker has a base case of 2,900 for the S&P 500 in 2018, up 11.5% from today’s opening, but he projects that the index could reach 3,300, up 26.8%, if corporate tax cuts take effect in 2018, Bloomberg says.
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