Is an End to the S&P 500’s Record Rally in Sight?

Published On Oct 22, 2024, 7:47 AM

Analysts are cautioning that the strong rally in the S&P 500, which has gained at least 20 percent over two consecutive years, may be coming to an end due to various economic and geopolitical challenges. Concerns include sluggish global growth, potential geopolitical tensions, soaring national debt combined with high interest rates, and inflated stock valuations that may restrict companies' earnings potential. Goldman Sachs forecasts only a 3 percent annualized nominal return for the S&P 500 over the next decade. Investors are advised to brace for lower returns while political dynamics could also lead to market volatility.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

SPY View SPY chart on TradingView

Negative

Due to expected lower growth and various economic challenges, alongside the warnings issued by Goldman Sachs regarding future stock market performance, it is likely that overall market sentiment will turn negative as investors adjust their expectations for returns.

IVV View IVV chart on TradingView

Negative

Given that many Americans rely on stock performance for retirement, the potential for declining stock returns could lead to significant shifts in investor behavior and further market adjustments. As economic forecasts become less optimistic, the ETF SPY representing the S&P 500 might experience downward pressure.

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