S&P Forecast

S&P 500 Forecast

If you’d invested money in S&P 500 listed stocks in the spring of 2020, you would have almost doubled your ROI.  S&P is regarded as the “real stock market” by many investors and they keep a close eye on them.

Of late however, investors are a little fearful. The S&P fell hard this week, dropping 115 points last week. The news on employment, interest rates, and the new Covid variant will linger and dampen next week’s forecast. See below for buying and selling signals and prices for S&P listed stocks.

For the last 6 months, S&P stocks have shown in the red, although the last weeks drop has brought much of the losses. Are the mega caps the right choice going forward?  Big tech, big oil, and Bitcoin are down. However, SP Megacap Crypto index is up 243% over the last year.

Some investment advisors have suggested buying a basket of S&P stocks or finding specific value stocks that will outperform the S&P, Dow, and NASDAQ.  2022 will likely be a year of picking winners. Let’s take a closer look at which S&P stocks are improving.

S&P Stock Prices last 3 months.

See more on signals of stocks to sell, and on the best stock picks of 2021.  Which post pandemic stocks are best and check out the best stocks on the Dow Jones and NASDAQ indexes.

S&P recommended buys
S&P Recommended buys. Best stock picks. Screenshot courtesy of finscreener.

For newbie self-directed investors, you can learn learn more about the S&P below and be introduced to the listed stocks below. You’re looking for the best performing S&P 500 stocks to invest in and you’ll find them here too. In fact, you’ll discover that certain stocks on the S&P 600 are actually outperformers.

Some forecast modellers actually have the S&P 500 index potentially hitting 6,000. One expert whom most people ridiculed two years ago said it would hit the unrealistic price of 3500. Well it’s passed 4,162 in after hours futures trading tonight. Bears and short sellers are suffering so far in 2021. and 2022 should be another good year as long as the current US government doesn’t spoil the party.

S&P recommended buys

S&P Recomended buys. Best stock picks. Screenshot courtesy of finscreener.

S&P Forecast to 2022

The S&P 500 forecast mirrors the Dow Jones forecast. If you’re looking for a faster upside, check out the S&P 600 stocks below, and review the Russell 2000 forecast of small caps which might be more rewarding. If you’re  concerned about a bubble and stock market crash ahead, then read up on hedging strategy.

This old forecast was pretty accurate: “Goldman is expecting the S&P 500 to end the year at 4,300, implying a 13% increase from current levels and a new all-time high. The median S&P 500 forecast from a Bloomberg survey is 4,100 versus the index’s current level of 3,850” — from Bloomberg Report.

Wages always lag inflation so that’s a positive for business input costs. The big knock is that companies get wasteful and that consumption slows over time. And of course, inflation is followed by crisis, which is followed by higher interest rates and government meddling, and then finally a stock market crash. Not a good chain of events overall for investors, unless you have lots of funds are hoping for a big crash or correction and “buy the dip.”

2021 is going to be good for the S&P 500. When the vaccines take full effect, the economy will grow. GDP estimates are above 7%. There is huge pent up demand and most Americans have money to spend.

Currently, many investors have been ploughing money into Cryptocurrency and Tesla/EVS. Those are decidedly risky and volatile.

The S&P, DOW have shown moderate volatility and similar returns while the NASDAQ has suffered much more ups and downs, which might appeal to day stock traders.   Investors are uncertain right now and are reviewing forecasts and predictions for today, next week, next month and 6 months.

S&P Sector Performance Last Year

Chart courtesy of novelinvestor.com.

Here’s TradingView’s latest quote on the S&P sectors. IT (and the NASDAQ), Consumer discretionaries, and consumer staples are down again this week, presumably because of weak stimulus news and rising Covid 19 variant infections in many states.

S&P sectors today
S&P sectors today. Screenshot courtesy of TradingView.

Safe Investing in the S&P 100

Companies listed in the S&P 100 such as Pfizer, Walgreens, Coca Cola, Apple, Pepsi, Chevron and GE look pretty good headed into 2022 with the recovery. Check them out further on Barchart.com and for more on the S&P 100 forecast.

Introducing the S&P 600

This chart below reveals the S&P 600 has performed the best. Find out which S&P 600 stocks have been pushing its price performance in the last 6 months.

Here are the best performers of the S&P 600 stocks. Gamestop was rumored to be issuing new stock, but you may want to pass on that one.  Find out more on Barchart.com or Yahoo Finance. Outdoor equipment, energy, materials, beverages seem to be strong of late (heading into the summer recovery?).

Best S&P 600 Stocks. Screenshot courtesy of Barchart.com

With the economy revving up soon, Trillion dollar stimulus money pouring into the economy, we could see the S&P hit

The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment,” said Keith Buchanan, portfolio manager at Globalt in Atlanta.  from Reuters news release today.

What is the S&P 500?

What is the S&P index?  The S&P 500 or Standard & Poor’s 500 Index, is a weighted index of the 500 largest U.S. publicly traded companies (large-cap U.S. equities). The index has a 69.0% trailing 1-year total return. It’s a measure of how well the top US corporation s are doing. It can be contrasted with the Russell Index which is a measure of small to medium-sized companies. The Russell Index has actually performed well in 2020, and warrants a good look for investing.  Check the Dow forecast and the NASDAQ Forecast too.

Stocks in the S&P 500 include Google Alphabet, Amazon, American Airlines, Facebook, Apple, McDonalds, NASDAQ, Nike, Delta Airlines, Sherwin Williams, Netflix and other high valuation companies. Facebook, Apple, Amazon, Netflix and Google — the FAANG stocks — now make up more than 11% of the S&P 500 index.

The S&P delisted Facebook as an ethical company, and we wonder if Google is next, having been convicted in Europe of anti-trust violations, and preparing to defend a US FTC investigation.

Best Consumer  Discretionary Stocks

Best S&P Sectors This Year

Screenshot courtesy of TradingView. Check out their excellent coverage on their website.

S&P 500 Forecast 2021, 2022, 2023

S&P 500 Forecast. Screenshot courtesy of Yardeni.com

Take a further look at the US Economic forecast, housing market forecast, oil price forecast and look ahead with an open mind at the next Presidential election. Some experts say a new China/US trade deal would be positive for S&P index companies.  See more on Stock Market Predictions .

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