Posted on 04/10/2015 8:05:43 AM PDT by SeekAndFind
The Standard & Poor’s 500 Index rally isn’t over and the gauge could jump 50 percent more by 2020 as the U.S. economic recovery heads for a record winning streak, according to Morgan Stanley.
A slower though sustained period of growth could help the equity benchmark gauge peak near 3,000, according to a report dated today. The world’s largest economy, which began recovering in July 2009, may continue growing for five years or more, making it the longest period of expansion, Morgan Stanley said. The S&P 500 closed at a record 2003.37 last week.
Three rounds of stimulus have helped spur growth in the world’s largest economy. The S&P 500 almost tripled from its low in March 2009, sending the value of U.S. shares to a record $23.9 trillion on Aug. 26. A report showed last week that gross domestic product rose in the second quarter more than forecast, pushed by the biggest gain in U.S. business investment in more than two years.
“Equities should benefit from a scenario where the probability of a cycle peak remains low for some time,” Adam Parker, chief U.S. equity strategist at Morgan Stanley, and economist Ellen Zentner wrote in the note. “As the prolonged expansion becomes more visible, we’d expect a materially higher U.S. stock market.”
The S&P 500 rallied 3.8 percent in August, the most since February, as investors bet central banks will continue to underpin global economies. Minutes from the Federal Reserve’s July meeting released last month reinforced the central bank’s commitment to supporting the recovery even as some policy makers indicated a willingness to raise rates sooner than anticipated.
The U.S. economy will grow 2 percent this year and 3 percent next, which would be the most since 2005, according to the median forecast in a Bloomberg News survey.
(Excerpt) Read more at fa-mag.com ...
Now I’m CERTAIN a market crash is iminent.
Well, sure, if the Fed prints enough money, it’ll go up. If not, then nada. Fundamentals don’t matter anymore because high frequency traders have turned the market into a casino. The only thing propping the market up is bogus liquidity sloshing about due to the Fed printing money no one wants (or can obtain) for legitimate enterprise expansion.
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