Monday 13 January 2020

Modest upside seen for US stocks, “excellent time” to move elsewhere

The S&P 500 rose 0.9 percent last week, touching another record high on Thursday.

Despite the high stock prices, analysts expect further gains ahead.

“The worst thing that clients and investors can do with the market at current levels is pull the plug and go underweight equities,” PNC Financial’s Amanda Agati told CNBC on Friday. “We still think there’s room for this market to move higher.”

Most, though, see only modest upside for US stocks this year.

“Tech, Health Care, Utilities, Financials, and Consumer Staples are all less than 5% below their price targets, which is a stark difference from last year when stocks were anywhere from 10 to 20% below their price targets,” Bespoke Investment Group said in a note to clients.

There may be better opportunities elsewhere though.

“If your asset allocation has significant domestic exposure and little-to-no international equity exposure, we think now is an excellent time to make a shift,” Bespoke Investment Group said.

No comments:

Post a Comment