Credit Suisse: S&P 5200 points, S&P 500 target raised due to strong economic growth expectations
Strong expectations of real and nominal economic growth, further increases in cyclical corporate profit margins, increased repurchases, and the Fed’s tightening policy, the discount rate is still beneficial to companies. Combining these factors, Credit Suisse made this constructive outlook
Credit Suisse has increased its holdings in cyclical sectors such as energy, materials, industrial and consumer discretionary goods, due to the expected "strong gross domestic product (GDP) and inflation" and continued profit momentum. In addition, given weak growth prospects in 2022, Credit Suisse downgrades the ratings of financial stocks and healthcare stocks to underweight.
Article excerpted from the US Stock Research Agency
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