00:00Top strategists largely expect another year of strong returns for the U.S.'s leading S&P 500 stock index in 2025,
00:07according to early prognostications from major banks, a welcome, bullish signal for investors already enjoying a historic market.
00:14Goldman Sachs predicted in a Monday note to clients that the S&P will end next year at $6,500,
00:20with a 10% gain from the index's roughly $5,900 level Wednesday, not accounting for dividends.
00:26It's a view predicated on continued U.S. economic expansion,
00:30and bolstered by the forecasted 11% earnings per share growth for the 500-company index.
00:35Morgan Stanley, the Goldman rival, has a milder 13% EPS growth forecast than Goldman,
00:41but shared the potential for wider-than-normal risks to its forecast
00:45due to the potential uncertainty that the recent election outcome introduces.
00:49UBS Global Wealth Management has a 6,600 target for the S&P by the end of 2025,
00:54indicating a slightly more bullish 12% gain.
00:57The election likely pulled forward the timing of the returns associated with
01:01optimism from President-elect Donald Trump's return to the White House in January.
01:05Jason Draho, the group's head of Asset Allocation Americas, wrote to clients last week,
01:10BMO Capital Markets, the Canada-based firm, has a 6,700 price target for the S&P,
01:15predicting a 14% gain.
01:18Earnings growth is actually understated, and the train has left the station,
01:21with the prospect of further gains as the Federal Reserve lowers interest rates,
01:25BMO's chief investment strategist Brian Belsky told CNBC on Monday.
01:30Up 23% year-to-date, the S&P is on track to nearly match 2023's 23% gain.
01:36This would be the first time the index rose at least 20%
01:39in consecutive years since 1995 to 1998, during the internet boom.
01:45For more on this story, check out Derek Saul's article in the link in the description.
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