Key takeaway
Credit Suisse
- 6% surge in global equity expected by mid-2018
- Global market may remain flat for second half of 2018
JPMorgan
- JPMorgan team remains optimistic overall on global markets for 2018
According to top Credit Suisse global equity strategist Andrew Garthwaite, global shares should see a healthy 6 percent surge until the middle of next year based on the present solid macro backdrop.
For now, Andrew Garthwaite and his team maintain an overweight stance toward equities with underweight on bonds. They note a risk that the ‘final hurrah’ could see more of an asset bubble emerge, according to their Monday Note. “There are clear signs of investment-led growth, and we show this is typically good for both markets and earnings.”
Credit Suisse year-end 2018 target for the S&P 500 was 2,875 points, but Garthwaite said he was “a little more cautious” with regards to the half of next year, seeing scope for a sideways or flat market, with the potential for a correction.
Meanwhile, strategists at JPMorgan were somewhat more optimistic, advising clients that they remained “constructive” on global equities although they believed it “prudent” to lock-in some profits in cyclical stocks. They also believed US earnings had yet to price-in any prospect of tax cuts.
Related Unit Trust Funds:
BlackRock – BlackRock Global Equity Income Fund
Nikko AM – Nikko Global Dividend Equity Fund
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First report on CNBC by Thomas Franck: Global stock run has another 6% to go, Credit Suisse.\
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