"Dan: Before we get into what Wall Street is predicting for 2026, let's get into why (or why don't) these predictions matter in the first place. Do they hold real weight, or is it just another bit of speculation? Joe: Given the wide range of outcomes, it's a highly speculative exercise. But on a directional basis, it's an important guidepost for investors. The ones that do their homework can compare the various theses and see who they align most closely with, then follow that strategist's calls all year."
"Joe: Yes, it's very possible that they're overcorrecting after undershooting the S&P 500 the last two years. Wall Street was collectively 18% off the mark in 2024, and while they've been better this year, they're still lagging by 4%. But they have been directionally correct. Ultimately, it's a better move to pick a strategist or two to follow, rather than try to obey the entire hive mind."
Wall Street firms are issuing S&P 500 targets for the end of 2026 amid year-end prediction season. Strategist forecasts span a wide range of outcomes, making them speculative but useful for directional guidance. Investors can evaluate different theses and align with strategists whose calls match their views rather than following the entire consensus. Analysts underpredicted recent S&P performance, missing by 18% in 2024 and by 4% this year, which may lead to more aggressive targets for 2026. Shifts at the Federal Reserve add another layer of uncertainty to market projections.
Read at Business Insider
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