Wall Street Strategists Forecast A Continuing Bull Market For 2017

As we near a close to 2016, it is time to look forward to 2017. We have done this in 2014, 2015, and 2016 so it is becoming a tradition to see which strategists did well and which missed the mark. What do the experts think will happen in 2017 and should we even care?

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Perhaps you are familiar with Philip Telock's landmark UC Berkeley study that looked at 82,000 predictions over 25 years by 300 leading economists. It turned out that their so called expert views were no better than random guesses, and worse, the more famous, the less accurate the prediction.

Last year, the strategists predicted a bull market for 2016 and they almost hit the number right on the mark. Their average forecast was for a 7.2% gain in the S&P 500 to 2215. They should get a round of applause as the S&P finished at 2239. Well done. Deutsche Bank's David Bianco gets the highest grade with a forecast of 2250, only missing by 11 points. Barclays' Jonathan Glionna should also be given a trophy as he was within 2% for the past couple of years. Let's look at the numbers.

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Predictions for 2017

After looking at all the Wall Street reports, I compiled the predictions from 11 top stock market strategists (the eternal bull Tom Lee hasn't released his 2017 forecast). For 2017, the average price target for the S&P 500 is 2352 or a 5.1% return. Let's take a look at the forecasts and I've also included their predictions from last year so you can see if they are bullish or even more bullish - bears are clearly in hibernation.

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Bull isn't tired yet

Last year's two most accurate strategists, Bianco and Glionna, are also two of the most bullish on the street. Glionna has a bullish target of 2400 (+7.2%) and BIanco has a target of 2350 (+5%). They both see corporate tax rates falling with the new administration which will translate to higher earnings. Here are their other reasons for seeing blue skies ahead.

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Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no ...

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