What stories do the forecast models about the stock market outlook 2022 say? The forecasts tell different stories ranging from an above-average year to predicting that there is likely to be a slight pullback. But, one thing is sure that 2022 will be a critical year as the pandemic-induced imbalances would begin to resolve and the business cycles moderate from the extremes.
Stock market outlook 2022 – Forecasts by JP Morgan and Goldman Sachs
Let us start with the most bullish forecasts by JP Morgan and Goldman Sachs, both investment banks. JP Morgan predicts that the S&P 500 Index will touch the 5,050 mark by the end of 2022 from the closing of 4,567 points on December 1, and it translates into a gain of 10.6%. The Goldman Sachs model pegs the number of S&P 500 Index at 5,100 points with an increase of 11.7 %. The optimism of Goldman Sachs is betting high on retirement funds that they feel will bounce back despite acknowledging the headwinds of 2021 like a tightening Fed, decelerating economic growth, and rising real yields.
According to the forecast model of Bank of America, It will be a lackluster year for the S&P 500 index that will finish at 4,600 points with a marginal gain of 0.7%. Morgan Stanley paints a bleak picture and sees S&P 500 Index sliding to end the year at 4,400 points, which means a loss of 3.7% from the current price. The experts at Morgan Stanley point to the persistently high inflation that is likely to remain for some time, as observed by Jerome Powell, Federal Reserve Chair, to justify their prediction.
In the end, it is all guesswork
The stock market forecast models are like rituals practiced for years, but there is no reason to consider these dependable. Most of the predictions hinge around the S&P 500 index based on the performance of only 500 US large-cap companies. Interestingly, these companies keep changing their outlook throughout the year several times. Simply these predictions are nothing more than guesswork.
Instead, tracking specific stock events can result in more stable predictions closer to reality. Moreover, it is easier to predict specific stock events.
Pfizer stock prediction
People expected that Pfizer’s share prices would skyrocket after the vaccine launch. But Pfizer’s share prices have belied expectations and remained steady without the surges that everyone hoped. Although it might be foolish to associate with any exercise related to Pfizer stock price forecast 2022, analyzing the factors that drive the share price seems sensible. Taking into account everything related to vaccines, R&D potential, cash flows, manufacturing capacity, and Pfizer Index Inclusion, the share prices of Pfizer in January 2022 will hover between $59.23 and $66.79 to end the year between $82.02 and $92.49. The trend is clear that buying Pfizer stocks now and holding them through 2022 might make good sense.
GE stock prediction
Taking the words of GE CEO Larry Culp, his priority is to improve General Electric’s financial position and strengthen the industrial core of the company. The company would exclusively manufacture gas turbines, jet engines, hospital equipment, and wind turbines. As a step towards streamlining the businesses and augmenting finances, the company has sold off its lower growth businesses, and it should help the organization become leaner and stronger. The moves of the American industrial icon generated a positive reaction from Wall Street that believes in the company’s positional strength.
The company continues to progress in achieving its ambitious goals of turning around, and cash flows are likely to improve as the overall economy and the airline industry gradually open after the pandemic. So, that’s about GE stock price forecast 2022.
Coinbase stock prediction
Since April, when the company went public, Coinbase stocks staged a strong comeback in October and went up 44% as the crypto market surged, with Bitcoin gaining the most. Most analysts are very bullish about Coinbase, and 50% hold bearish views about Coinbase stock price prediction 2022. Overall, there is nothing much to talk about because Coinbase stocks will maintain a flat trajectory in 2022.
Stock market outlook 2022 is only a projection of what might happen, and it can significantly differ from reality, and you must apply your mind to evaluate stocks in your way.
