CNNMoney: Bull market faces test in ’16 but will rise 9 percent
There’s a lot of talk of the bull market tanking in 2016. The market professionals CNNMoney polled aren’t buying it.
On average, these folks estimate the Standard & Poor’s 500 will end 2016 at 2,194, up 9 percent from Friday’s close. That would represent a solid rebound from this year’s anemic performance, CNNMoney reported.
The S&P 500 is down over 2 percent so far this year, putting it on track for its worst year since the 2008 financial crisis.
“We think this cyclical bull market has more room to run and expect a good, but not great, return for the stock market in 2016,” wrote Scott Wren, senior equity strategist at the Wells Fargo Investment Institute.
A pickup in spending by businesses and consumers is expected to help the market rise.
Those surveyed believe that should lift corporate profits, the main driver of equity prices.
“The good outweighs the bad,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. “Two straight months of great job growth, early signs of wage inflation and low energy prices create a resilient consumer that should keep the U.S. moving forward.”
Among the biggest concerns: China, terrorism and inflation.
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