Reuters polling on US equities, with the headline median forecast from 50 analysts showing
- S&P500 expected to finish 2021 at 4,100
- expected to be at 4,000 by end-June
- some strategists warning of a possible surge in inflation, many viewed a correction in stocks in the next six months as likely or very likely.
- Progress in distribution of the coronavirus vaccine coupled with President Joe Biden’s proposed $1.9 trillion package for pandemic relief have boosted the outlook for the economy and earnings.
Dow Jones industrial average
will finish this year at 32,970
Risks highlighted include:
- inflation concerns
- higher taxes as the economy accelerates
On higher yields:
- “Higher bond yields aren’t turning us bearish on the year,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets … “What the increase in yields does do, in our view, is provide another justification for rotation out of defensives and secular growth.”