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“Unbelievable Prediction! Morgan Stanley Projects S&P 500 to Hit 4500 at the End of 2024”
Morgan Stanley’s Prediction on S&P 500 for 2024
Morgan Stanley’s Mike Wilson expects to see the S&P 500 (^GSPC) to reach 4,500 by the end of 2024, with earnings estimates per share of $229. With that, the S&P 500 would see a 2% increase from current levels, far lower than the normal yearly return of 10%.
Why Morgan Stanley’s Forecast is Unique
Wilson’s prediction is based on various factors, such as the cautious corporate commentary on the US economy as well as weak earnings revision breadth. Additionally, the erosion of fiscal stimulus and the onset of “higher for longer” interest rates are also impacting one’s sentiment and, by consequence, decreasing earnings.
The Outlook on Earnings
Fortunately, Wilson sees a stronger future for the S&P 500 in 2024 due to positive operating leverage from the usage of technology and artificial intelligence. This belief is shared by Bank of America’s Ohsung Kwon, who has expressed confidence in corporate’s ability to get back to their former earnings. Wilson also acknowledges that once companies rightsize their expenses appropriately, margin expansion will occur, leading to improved earnings growth.
It may seem like a far-off dream at the moment, but there is a possibility that the S&P 500 could reach 4,500 by the end of 2024, according to Morgan Stanley’s Mike Wilson. With several factors weighing on earnings, the forecast is unique and one to pay attention to for investor’s looking for more clarity on the situation.