Wall Street Research Firms Cut S&P 500 Year-End Targets Amid Global Trade War
In a move that underscores growing concerns over the deepening global trade war, Bank of America Global Research and Oppenheimer Asset Management announced on Monday that they have reduced their year-end targets for the S&P 500 index to below the 6,000 mark.
BofA Global Research’s Perspective
According to BofA Global Research, the downward revision in their S&P 500 target is a direct response to the escalating trade tensions between the United States and China. In a research note, the firm’s strategists wrote, “We now see a 15% chance of a full-blown global recession in the next 12 months, up from 5% in June.”
Oppenheimer Asset Management’s Perspective
Oppenheimer Asset Management, another prominent Wall Street research firm, also lowered its S&P 500 year-end target to 5,800. In a statement, the firm’s chief investment officer, Arthur Hogan, explained, “The trade war is a major concern for the market. We believe that a resolution is unlikely in the near term, and that the ongoing uncertainty is weighing on investor sentiment.”
Impact on Individual Investors
For individual investors, the downward revision in the year-end targets for the S&P 500 index could mean that it may be a good time to reconsider their investment strategies. Some experts recommend rebalancing portfolios, while others suggest taking profits and moving to cash or bonds. However, it’s important to remember that market volatility is normal, and that short-term fluctuations should not be the sole determinant of long-term investment decisions.
Impact on the Global Economy
The trade war between the United States and China is not just a concern for Wall Street investors; it also has far-reaching implications for the global economy. According to a report by the International Monetary Fund (IMF), a protracted trade war could lead to a significant slowdown in global economic growth. The report states, “The impact on global growth would be sizeable and broad-based, with advanced economies and emerging markets both experiencing a decline in output.”
Conclusion
The decision by BofA Global Research and Oppenheimer Asset Management to cut their year-end targets for the S&P 500 index to below the 6,000 mark is a clear indication of the growing concerns over the deepening global trade war. While this news may be disconcerting for individual investors, it’s important to remember that market volatility is normal and that long-term investment strategies should not be based solely on short-term fluctuations. At the same time, the trade war’s impact on the global economy is a cause for concern, and it will be important to monitor developments closely in the coming months.
- BofA Global Research and Oppenheimer Asset Management have lowered their year-end targets for the S&P 500 index to below 6,000
- The downward revision is a response to escalating trade tensions between the United States and China
- The trade war’s impact on individual investors could mean reconsidering investment strategies
- The trade war also has far-reaching implications for the global economy, with potential for a significant slowdown in growth
