The three top strategists look on as the S&P 500 is near an all-time high


The S&P 500 is close to the record.

Russian President Vladimir Putin said on Tuesday that his country has registered the world’s first coronavirus vaccine. While Skepticism spreads around the vaccine, particularly its long-term effects and safety, the announcement helped to lift investor sentiment.

The S&P is now around 4.5% years old and has been around 46.5% since March 23.

Catherine Rooney Vera, research at Bulantic Capital Markets and strategist for key markets, attributed the massive government stimulus to:

“If we don’t get additional fiscal stimulus, I think it would be ugly for the markets going forward. Let’s face it: We’re … very close to all-time record highs, and the main drivers of that appreciation. The S&P 500 has been inspiring both fiscal and monetary.… The combination of variables we have right now is very fortunate for markets, which is why they continue to move higher, which is mainly Is driven by retail investors.… A Baron’s article has surfaced. Saying recently that 25% of recent market moves have been brought by retail investors. I think the boom here is a case of a real commentary. There is potential for. Perhaps this is not a Russian one, but there is potential for a real vaccine in the course. Over the next six months. If that is the case, we have a fundamental premise, which has frozen the nascent growth in US consumption. And if that happens, this V-shaped recovery that we’ve seen is actually the leg. Over there … what we need to see is something [retraction] Due to fiscal stimuli, in fact, what we are seeing now seems to be Lehman Brothers’ reaction to child’s play. We are talking about the billions and trillions of additional fiscal stimuli in the market that are already at record highs with consumption, boosted by a Federal Reserve that is actually dramatically increasing its balance sheet. ”

CFRA’s chief investment strategist Sam Stowal of the US equity strategy reinforced market forces for the advancement of vaccination and the possibility of additional incentives.

“I think it’s not specifically focused on Russian virus information, but rather the implication that the whole world is getting closer to some kind of vaccine, some kind of cocktail. … So, it’s really just , I think, we are excited. We progress from the health care point of view… and I believe there will be an incentive package, but I think the reasons for the disagreement are still going on, it means that We are unlikely to get an additional package beyond this. I think we are witnessing a bit of a rally in anticipation of one final passage.

David Costin, chief US equity strategist at Goldman Sachs, found the long-term growth noticeable:

“One reason for the positive expectations on the economic front is definitely the possibility of changes in economic activity. Goldman Sachs’ economics forecast for next year, the average annual growth for the US economy. [is] About 6.2%. Right now the consensus is around 3.9%. Therefore, this is certainly a more optimistic outlook than many at the level of business activity for the next year. This translates into better growth from the perspective of the equity market. So, then the question is, how should portfolio managers place themselves in such a background? And the idea of ​​better development is still with technology. So … in terms of day-to-day rotation, maybe today we have seen or for the last few days I think maybe the basic issue is missing that rates, interest rates are likely to be very low. … but better growth is for longer periods, characterized by more technical stocks than anything else, and long-term, better growth is longer-term, more valuable, more valuable in low-rate environments. So, this is the story, if you will, behind the technical logic. This is the reason why I would be placed to focus on long-term development for the period ahead. ”

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