Stifel said the Fed's mistakes will trigger a 45% rally in the S&P 500 next year.
Next year, the pandemic will subside and the economy will fully recover, JPMorgan Chase predicts. Progress in health care will lead to a "strong" economic recovery, a return to global mobility and a significant increase in consumer and business spending.
Even after three years of growth in the stock market, investors will see a continued rally in 2022, according to Marko Kolanovic, chief strategist for global markets at JP Morgan. In a note on Wednesday, he outlined three reasons he hopes for the stock. continue the rally next year. The S&P 500 may add another 25% in a year.
In addition to ending the pandemic, this may be supported by higher growth in corporate profits, improved conditions in China and emerging markets, and support from central banks, despite the accelerated winding down of the quantitative easing program. recently adopted by the US Federal Reserve.
JP Morgan Bank is traditionally considered the Rockefeller family bank, and Kolanovich himself has a reputation as a kind of "clairvoyant mathematician" who calculates the movement of markets in the same way that astronomers calculate the movement of planets.
The American investment firm Stifel believes that the Fed's policy is actually not tough and could trigger a 45 percent rally in the S&P 500 in 2022. To avoid the formation of a bubble in the stock market, the regulator had to end the bond buying program long ago and raise rates.
All signs point to increased volatility in the stock markets in the near future and big sell-offs. “The market is nearing the brink of an abyss and the Fed will no longer support the markets following the acceleration of the QE collapse,” said investment expert Phil Tewes.
In an unfavorable scenario, the most risky market segments, such as high-growth tech companies and cryptocurrencies, could quickly collapse, after which the downturn spread to all other markets and hurt the economy, he said.