January 18, New York: The US stock markets seem to be witnessing a gradual upward trend in 2021 – a year that is anticipated to return to some normalcy, above leaning economic growth and upward stock markets, according to Wall Street experts.
Double-Digit Gains of US Stock Markets
Despite this year’s sharp sell-off, the index S&P 500 is notching a nearly 15 per cent gain for the previous year. For this year, 2021, several finance and equities’ experts expect another year of double-digit gains. According to a survey conducted by CNBC, the markets in 2021 are expected to achieve a year-end-target of 4056 or about 9.5 per cent gain from where the market currently stands. However, some strategists such as Fundstrat’s Tom Lee, presume a rally more in correspondence with 2020. Lee opines that the S&P can surge up to 4300 points from its current to 3700 points.
While the coronavirus vaccines are expected to unshackle individuals from the pandemic restrictions, experts look back towards a free economy as 2021 begins to progress. Work-from-home should eventually return to work-from-office; theatres looking to open up while dine-in at restaurants to become regular while people will no longer be afraid of travelling to distant places.
Ongoing Sluggish Economy Movement
However, the path leading to the second phase is definitely not without bumps. Despite the hubbub created over the vaccinations for the deadly virus, the economy is still moving slowly with a weakening labor market and unemployment claims have surged to September levels, as businesses and restaurants were shut down owing to the pandemic.
Regarding this US stocks markets, according to Ethan Harris, the head of global economics research at the Bank of America, the shutdowns at this stage especially as vaccine trials are actively going on are going to be extremely targeted and would be nothing like that of the springtime. He quoted saying, “it’s going to eat away at the economy in the next few months. You come in with this big loss of momentum to start the year off. Then you look out to the spring and there are … reasons for optimism.”
Source: CNBC
